Amazon.com Inc reported strong financial results, with a slight decline in online sales showing struggle in sustaining growth, according to a report by The Wall Street Journal on Thursday.
- The Seattle-based tech giant earned almost $30 billion in profit in the past year as millions of consumers moved online to meet their shopping, entertainment, and work needs.
- Amazon’s cloud-computing business rebounded after a period of slower expansion, and its advertising business continued to expand rapidly.
- As with other large tech companies, investors have started worrying whether such momentum can be sustained. Amazon recorded second-quarter sales of $113.1 billion, slightly less than the $115.4 billion predicted.
- Its shares dropped about 7% in after-hours trading Thursday. The company said it projects sales of $106 billion to $112 billion for the current quarter and operating income between $2.5 billion and $6 billion.
The results revealed the difficulty Amazon will have matching results from 2020 when millions of shoppers turned to online options during lockdowns. Amazon had initially signaled that such demand was sustainable.
AMZN down -0.84%