Amazon has reportedly warned of slower sales in the current quarter after it incurred a loss of 126 million dollars in the second quarter. According to the BBC, Amazon forecast third quarter sales of between 19.7 billion dollars and 21.5 billion dollars, which could mean sales growth of as little as 15 percent – well down on previous quarters. Also Read - Redmi Note 10S with Rs 1,000 discount on Amazon sale: Check offer details, new priceAlso Read - OnePlus Nord CE 5G, OnePlus TV U1S launch in India today: Event time, how to watch the event
Shareholders had a sense of relief, as sales were up 23 per cent in the second quarter as per expectations. Meanwhile, the warning came as a scare for the investors following which, in after hours trading in the US shares slumped by 6 percent. Also Read - Amazon founder Jeff Bezos is going to space next month with his brother Mark
The company reported severe losses between April and June following heavy investment in new products and services, including the launch last month of Amazon’s first smartphone, the Fire Phone.
The company also pointed to the need to invest in the expansion of its web services division – the behind-the-scenes computing power it rents out to clients including Netflix, NASA and the CIA, as well as smaller app creators, the report added.