Amazon.com Inc. projected sluggish second-quarter sales growth, as consumers reduce their online spending amid rising inflation and a return to pre-pandemic activities. The shares plunged about 10% in extended trading.
Revenue will be $116 billion to $121 billion in the period ending in June, Amazon said Thursday in a statement. Analysts, on average, estimated $125 billion, according to data compiled by Bloomberg.
Amazon has been grappling with higher energy and labor costs and changing shopping habits sinces its online store became essential for consumers during the pandemic. First-quarter revenue from the main e-commerce business declined 3% from a year earlier. Those sales had jumped 44% in the same period of 2021 as the delta variant of Covid-19 spread across the U.S.
