Andy Jassy, chief executive officer of Amazon.Com Inc., speaks during the GeekWire Summit in Seattle, Washington, U.S., on Tuesday, Oct. 5, 2021.David Ryder | Bloomberg | Getty Images
Amazon has cited several major global events, such as the Paris Olympics and the U.S. presidential election, as reasons for its weaker revenue forecast for the third quarter. Additionally, the attempted assassination of former President Donald Trump has further distracted consumers, impacting online shopping activity. Amazon’s finance chief, Brian Olsavsky, noted that these distractions have altered traffic patterns and consumer focus. The company has projected third-quarter revenue of $154 billion to $158.5 billion, which is below analysts’ expectations. Besides these distractions, Amazon also mentioned that economic challenges are causing consumers to be more cautious with their spending, opting for cheaper items and everyday essentials over high-ticket products. This cautious spending has contributed to a revenue miss in the second quarter and a subsequent drop in Amazon’s share price by over 7% in extended trading. Other e-commerce companies, like Wayfair and Etsy, have also observed similar consumer behavior trends.
#AmazonEarnings #ConsumerTrends #EconomicImpact #GlobalEvents #OnlineShopping