From CNBC: 2024-08-01 19:26:54

Amazon’s weak revenue forecast is attributed to a busy news cycle causing consumer distractions, including the Paris Olympics and the attempted assassination of former President Donald Trump. The company forecasted revenue of $154 billion to $158.5 billion for the third quarter, lower than consensus estimates, leading to a 7% drop in shares in extended trading. Shoppers are cautious due to economic challenges, opting for cheaper items, impacting average selling prices.

Amazon executives noted consumer spending patterns were affected by both the chaotic news cycle and economic challenges, with shoppers remaining cautious and focusing on buying essential items. Other e-commerce companies, like Wayfair and Etsy, have also observed a slowdown in purchases due to inflation and economic uncertainty. NBCUniversal reported over $1.25 billion in ad revenue from broadcasting the Paris Olympics, with a high percentage of new advertisers.

The busy news cycle, combined with cautious consumer spending and the shift towards buying cheaper products, led Amazon to provide a disappointing revenue forecast for the quarter. Despite the challenges, the company remains optimistic that deferred purchases will eventually be made. NBCUniversal, parent company of CNBC, has hit record revenue from broadcasting the Olympics, highlighting the impact of major events on consumer behavior.



Read more at CNBC:: Amazon says distraction of Olympics, Trump shooting caused weak guide