Amazon Has ‘Worst Day’ in The Financial Market Since 2020

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A pessimistic statement from Amazon yesterday (29) about the possible slowdown in economic growth in the next quarter, caused the Nasdaq and S&P 500 indexes to fall this Friday (30). The ecommerce giant saw its shares plunge 7.1% in what was considered the worst day since March 2020, when the company’s shares fell 7.92%.

The statement given by Amazon came after the release of weak results for the second quarter of this year. Talking about expectations of recovery in the coming quarters, the company said it believed that the deceleration trend in sales would continue, as customers begin to return to physical stores, with the mitigation of sanitary standards determined by the pandemic.

The retailer’s forecasts take into account a comparison with the same period last year, when many consumers flocked to digital retailers, such as Amazon, to prevent the virus from spreading. However, with the growing reopening of the economy in recent months, customers not only return to physical stores, but also spend more on travel and other services.

What do economic analysts say?

Barclays bank analyst Ross Sandler explained that Amazon reported revenue and operating profit for the second quarter of 2021 that were respectively 2% and 1% lower than expected, leading to the prospect of further losses for the third quarter. Although this is a common result, it becomes a “rare occurrence for a high-quality name like Amazon”.

For the analyst, predicting the consequences of the reversal of the pandemic outbreak is a challenging process for most companies, although Amazon continues “to add key members and gain participation in e-commerce”, which allows us to assume that there will be no harm to the “bull ” to long term.

Analysts at consulting firm Baird point out that Amazon has outperformed other segments such as advertising, cloud computing and subscription services such as Amazon Prime.

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