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Amazon Stock Declines on Disappointing Sales Outlook
2024-08-02 19:55:08
Stocks
Business
Technology

Amazon Stock Declines on Disappointing Sales Outlook

Amazon's stock dropped 5% as Q3 sales guidance missed estimates, despite exceeding EPS expectations. AWS showed strong growth, while advertising revenue fell short.

Amid Big Tech earnings reports, including Microsoft, Alphabet, Meta, and Apple, investors are wary of significant AI spending. The company faces increased competition from ecommerce giants like Temu and Shein.

The Q3 revenue and profit forecasts below expectations led to an 8% decline in stock price. Amazon is ramping up capital expenditures to boost AI and cloud services, aiming to stay ahead in the market.

Major news events like the Olympics and political disruptions have impacted consumer spending habits, posing challenges in sales forecasting, according to Amazon's CFO. This uncertain landscape may also influence marketing strategies of other companies amidst ongoing economic pressures.

Related news on that topic:

Stock Market Volatility and Economic Concerns Drive Global Slump

Global stock markets slump as US economic data weakens, jobless claims rise, and recession risks loom. US stocks tumble, S&P 500 and Nasdaq drop, while 10-year Treasury yield falls below 4%. Meta stock rises on better-than-expected results, while tech giants like Intel and Arm face job cuts and declining earnings. Investors anticipate rate cuts from the Fed, with Fed Chair Powell signaling a likely September cut. Big Tech earnings and upcoming jobs report are awaited. Uncertainties and crises impact the US market, with conflicts in the Middle East and recession fears weighing down stocks. The VIX index, known as the 'fear gauge', reaches its highest level since March 2023. Weak earnings reports and planned job cuts in the tech sector contribute to the market decline. The Federal Reserve hints at a possible rate cut but notes 'some' progress on inflation. The recent market swings are the most volatile in over a year, with the S&P 500 experiencing significant daily fluctuations.

Global Stocks Plunge on Weak US Data and Tech Earnings

Global stock markets have plunged amid fears that the US Federal Reserve has left it too late to begin cutting interest rates and risks damaging the world’s largest economy. Shares tumbled in Asia, with Japan’s Nikkei 225 index closed down 5.8pc for its worst day in four years, after weaker than expected US factory data showed output dropped to an eight-month low in July amid a slump in new orders. Federal Reserve chairman Jerome Powell indicated on Wednesday that a first interest rate cut could come in September as policymakers held interest rates at 23-year highs of 5.25pc to 5.5pc. However, markets in Hong Kong, South Korea, China and Australia all dropped sharply as traders priced in that the Fed will be forced to cut interest rates at all three of its remaining meetings this year. The sell-off was exacerbated by a Big Tech sell-off on Wall Street as results from Apple, Intel and Amazon failed to impress.

Read 44 more recent news on this topic

The press radar on this topic:

The Street
5. August 2024 um 23:47

Analyst revamps Amazon stock forecast before earnings TheStreet Daily Newsletter

Economy
Finance
Politics
Technology
Trump vows to fire SEC chair, positioning as pro-crypto. Amazon analysts adjust stock forecast ahead of Q2 earnings. Twitch reinstates Trump's account, citing value in hearing from nominees. Evercore ISI sees modest Q2 beat, revenue and operating income upside likely. BMO raises Amazon price target, cites AWS revenue growth path. Temu's growth, same-day/next-day growth, and higher retail margins. Amazon's Q1 earnings beat, CEO Jassy's comments, Google Cloud growth acceleration. AWS partners with..
Yahoo Finance
1. August 2024 um 20:58

Amazon stock tumbles on weaker than expected sales outlook

Finance
Economy
Technology
Amazon's stock fell 5% after reporting Q3 sales guidance below estimates. The company beat EPS but missed revenue. AWS saw strong growth, while advertising missed. Amazon's report came amid Big Tech results, including Microsoft's cloud revenue miss, Alphabet's YouTube ad revenue miss, Meta's better-than-expected results despite warning of 'significant' capital expenditures in 2025, and Apple's earnings. Investors have limited patience for massive AI spending, heightening scrutiny on Wall Street.
Inc.com
2. August 2024 um 17:12

Amazon CFO Says the Olympics and the News are Behind Slumping Sales

Economy
Politics
Amazon CFO says major news events like the Olympics, an assassination attempt on Trump, the election, and inflation have disrupted consumer spending habits, causing challenges in forecasting sales. This may impact other companies' marketing plans as the news cycle and economic pressures continue.
Yahoo Finance
2. August 2024 um 16:52

Amazon stock tumbles 8% as profit, revenue outlook disappoints

Finance
Economy
Technology
Amazon's Q3 revenue and profit forecasts missed expectations, sending stock down 8%. AWS revenue grew but missed forecasts. Amazon is increasing capital expenditures to support AI and cloud services. Amazon faces growing ecommerce competition from Temu and Shein. Amazon's Q3 EPS beat estimates, and its advertising revenue grew but missed expectations. Amazon's Q3 revenue guidance of $154 billion-$158.5 billion fell short of the $158.43 billion expected, and its Q3 operating income guidance of..
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