Amazon.com Inc. earned a weak third -quarter lead due to declining first -quarter revenue growth in three years.
Following that, Amazon shares experienced a 7% decline in the trading session on Thursday.
Amazon chief financial officer Brian Olsavsky said comparisons are difficult if one wants to compare year -to -year against his business.
Previously most consumers sat at home and relied more on e-commerce for deck day-to-day needs due to the Covid-19 pandemic outbreak.
Amazon’s revenue jumped 44% in the first quarter but that figure dropped to 27% for the quarter ended June 30 of $ 113.08 billion.
In addition, Amazon also predicts that this slow growth is likely to continue for the next few quarters.
For the third quarter, Amazon said it expects sales rates to range from $ 106 billion to $ 112 billion, representing 10% to 16% growth over the same period last year.
Looking at Amazon’s Web services revenue, it has increased by 37% in the second quarter as opposed to 32% growth in the previous quarter.
AWS revenue also reached $ 14.81 billion during the quarter and exceeded estimates set by the analysis by around $ 14.20 billion.
Despite disappointing second -quarter sales, it was still unexpected growth when supported by highly lucrative public computing, subscription and advertising businesses.
It was also driven by advertising and other services which recorded an increase in revenue of 87% year -on -year during the period.
