Amazon.com Inc. acknowledged that a rush to hire and build warehouses during the pandemic is catching up with the retailer as e-commerce sales growth inevitably slows due to the rapid pace of the outbreak.
This reality will weigh on revenue and profits going forward as consumers return to their pre-pandemic habits and inflation may reduce spending. Fuel and labor costs are already biting, and executives said Amazon is watching whether shoppers will cut back on their purchases to offset rising prices.
The dismal results and forecast sent shares down as much as 12% as the New York market opened, the biggest one-day drop in nearly eight years. The move brings Amazon’s losses to 23% for the year, beating the S&P 500’s decline.
Amazon said it lost money in the first quarter and provided guidance saying there could be another loss in the current period. Revenue will be as high as $121 billion in the three months to June, missing the analyst average…