Amazon Faces 'Transition Period'; Stock Down After Q2

Q2 was a “transition period” for Amazon customers home less amid fewer COVID-19 restrictions, Amazon Chief Financial Officer Brian Olsavsky told investors (See Q2 materials here.). Prime members continued to spend more at Amazon, but their “spend moderated” vs. the peak of the pandemic, he said. Since May, Amazon’s year-on-year growth rate, excluding Prime Day, slowed to the mid-teens, from 35%-40% at the height of the pandemic, Olsavsky said: The Q3 guidance of 10%-16% “reflects an expected continuation of this trend.” The e-commerce company’s sales were “softer than expected” at $113 billion, Cowen analyst John Blackledge wrote investors Friday. “Higher consumer mobility” affected e-commerce demand, he said. New CEO Andy Jassy wasn't on Thursday's call. Nor was founder Jeff Bezos, who stepped down as CEO July 5 and became executive chairman. It's Bezos' regular practice to skip quarterly calls. Amazon shares closed down 7.6% to $3,327.59 on Friday.