The shares of e-commerce giant Amazon saw a significant decline on Friday after the quarterly results failed to meet investors’ expectations. The online retailer narrowly missed analysts’ revenue forecasts for the second quarter, leading to a pre-market drop of 8.6 percent. Particularly disappointing was the outlook for the upcoming quarter, as revenue expectations fell short of estimates.
Bright Spot: AWS Division
Despite the overall disappointment, there were also positive aspects in the quarterly figures. The cloud division Amazon Web Services (AWS) recorded an impressive revenue growth of 19 percent. This success in the cloud business underscores Amazon’s strength in this promising segment. Nevertheless, this bright spot was not enough to improve the overall valuation of the company by investors, who are now critically questioning the future growth strategy of the corporation.
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