Amazon.com forecast disappointing income and revenue as it grapples with a weaker international market, overshadowing improving profitability and economic conditions in the US.
Amazon and other multinational corporations are being pressured by a declining European economy that is sapping consumer spending across the region. While North American net sales jumped 30 percent in the latest second quarter, its international segment barely broke even with revenue rising 13 percent.
“International was far weaker than expected and that plays into the guidance. We’re seeing weakness on the international side that the domestic business isn’t able to make up,” said Scott Tilghman, an analyst with B. Riley & Co.
Shares fell 2.1 percent to $297 in after-hours trading.
After the bell yesterday, the company reported a second-quarter net loss of $7 million, or 2 cents a share, compared to a profit of $7 million, or a penny a share, a year earlier. Revenue in the latest quarter was $15.7 billion.
Amazon had been expected to earn 5 cents a share on $15.73 billion in revenue in the latest quarter, according to Thomson Reuters.
The world’s largest online retailer also issued a cautious third-quarter outlook.