Amazon stock fell sharply late Thursday night after the company’s first-quarter results and outlook disappointed investors.
Both the company’s core online retail arm and its advertising segment missed Wall Street expectations, even though its Amazon Web Services (AWS) cloud business had another great quarter.
The e-commerce giant also forecast weaker-than-expected revenue for the second quarter.
Amazon admitted its hiring and warehouse-building frenzy during the pandemic is catching up with them as e-commerce sales growth slows due to the rapid pace of the outbreak. Physical storage capacity has now exceeded demand.
Consumers are returning to pre-pandemic habits as labor and fuel costs continue to rise. As inflation and bills soar around the world, Amazon officials are also keeping an eye on whether shoppers will cut back on their purchases to offset growing spending.
Amazon’s net sales for the first quarter were $116.4 billion, up just 7% year over year…