Amazon’s shares dropped more than 7 per cent in extended trading on Thursday after the company reported weaker-than-expected earnings and gave a sluggish guidance for the current quarter
The Seattle-based company said it expects its net sales to hover between $154 billion and $158.5 billion in the third quarter, an annual growth of between 8 per cent and 11 per cent.
The mid-range of $156.25 billion falls behind analysts’ average estimate of $158.24 billion.
Amazon said its guidance anticipates an unfavourable effect of nearly 90 basis points from foreign exchange rates.
Reduced demand for advertising and shrinking profit margins in the technology sector are limiting expectations for revenue growth in the near future, said Thomas Monteiro, senior analyst at Investing.com.
Its net income increased to $13.5 billion in the second quarter, or $1.26 a share, compared with $6.7 billion, or $0.65 a share, a year ago.
The company’s revenue during the April-June period increased 10 per cent on an annual basis to $148 billion, missing analysts' average estimate of $148.6 billion.
After the earnings announcement, Amazon stock dropped 7.64 per cent to trade at $170 a share after hours on Thursday.
It closed 1.56 per cent up at $184.07, giving the company a market value of $1.86 trillion.
“Amazon's second quarter report paints a clear picture of what this earnings season has been looking like for big tech so far," Mr Monteiro told The National.
"Although the numbers still looked solid from every financial metric, the market has priced in expectations that were just a little too high for the current macro environment."
Amazon's North America sales increased 9 per cent year on year to more than $90 billion and international sales jumped 6.6 per cent to $31.7 billion in the last quarter.
Amazon Web Services, the company’s subsidiary that provides on-demand cloud computing platforms to other businesses, reached $26.3 billion, rising annually by more than 18.7 per cent.
“We are continuing to make progress on a number of dimensions, but perhaps none more so than the continued re-acceleration in AWS growth,” said Andy Jassy, Amazon president and chief executive.
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Our family matters legal consultant
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
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If you go
The flights
Etihad flies direct from Abu Dhabi to San Francisco from Dh5,760 return including taxes.
The car
Etihad Guest members get a 10 per cent worldwide discount when booking with Hertz, as well as earning miles on their rentals. A week's car hire costs from Dh1,500 including taxes.
The hotels
Along the route, Motel 6 (www.motel6.com) offers good value and comfort, with rooms from $55 (Dh202) per night including taxes. In Portland, the Jupiter Hotel (https://jupiterhotel.com/) has rooms from $165 (Dh606) per night including taxes. The Society Hotel https://thesocietyhotel.com/ has rooms from $130 (Dh478) per night including taxes.
More info
To keep up with constant developments in Portland, visit www.travelportland.com. Good guidebooks include the Lonely Planet guides to Northern California and Washington, Oregon & the Pacific Northwest.
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The biog
Age: 46
Number of Children: Four
Hobby: Reading history books
Loves: Sports
The burning issue
The internal combustion engine is facing a watershed moment – major manufacturer Volvo is to stop producing petroleum-powered vehicles by 2021 and countries in Europe, including the UK, have vowed to ban their sale before 2040. The National takes a look at the story of one of the most successful technologies of the last 100 years and how it has impacted life in the UAE.
Read part four: an affection for classic cars lives on
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Read part one: how cars came to the UAE
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The five pillars of Islam
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5.
Tomorrow 2021
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THE BIO
Ambition: To create awareness among young about people with disabilities and make the world a more inclusive place
Job Title: Human resources administrator, Expo 2020 Dubai
First jobs: Co-ordinator with Magrudy Enterprises; HR coordinator at Jumeirah Group
Entrepreneur: Started his own graphic design business
Favourite singer: Avril Lavigne
Favourite travel destination: Germany and Saudi Arabia
Family: Six sisters
Haircare resolutions 2021
From Beirut and Amman to London and now Dubai, hairstylist George Massoud has seen the same mistakes made by customers all over the world. In the chair or at-home hair care, here are the resolutions he wishes his customers would make for the year ahead.
1. 'I will seek consultation from professionals'
You may know what you want, but are you sure it’s going to suit you? Haircare professionals can tell you what will work best with your skin tone, hair texture and lifestyle.
2. 'I will tell my hairdresser when I’m not happy'
Massoud says it’s better to offer constructive criticism to work on in the future. Your hairdresser will learn, and you may discover how to communicate exactly what you want more effectively the next time.
3. ‘I will treat my hair better out of the chair’
Damage control is a big part of most hairstylists’ work right now, but it can be avoided. Steer clear of over-colouring at home, try and pursue one hair brand at a time and never, ever use a straightener on still drying hair, pleads Massoud.
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Mohammed bin Zayed Majlis
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Company profile
Date started: 2015
Founder: John Tsioris and Ioanna Angelidaki
Based: Dubai
Sector: Online grocery delivery
Staff: 200
Funding: Undisclosed, but investors include the Jabbar Internet Group and Venture Friends
