Amazon Shares Plunge Amid Slowing Online Sales Growth 📉

Shares of Amazon.com (AMZN.O) fell over 12% on Friday after reporting slowing online sales growth in Q2 and noting consumers opting for cheaper purchases. Online store sales increased by 5% in Q2 to $55.4 billion, down from 7% growth in Q1. CEO Andy Jassy highlighted price-sensitive customer behavior. Amazon’s stock dropped to around $165, potentially losing $188 billion in market value. Competitive pressure from Temu and Shein, offering low-priced goods directly from China, intensified. UPS, Amazon’s largest customer, is raising fees due to increased low-margin deliveries from these competitors. Despite these challenges, Amazon Web Services (AWS) reported a 19% revenue increase to $26.3 billion, outperforming Microsoft’s Azure. Analysts note that retail consumer spending trends have impacted Amazon’s financials, reflecting broader economic shifts.