NEW YORK – (AP) – Online giant Amazon reported a decline in profits and sales in the third quarter as online splurging caused by the pandemic subsides.
The Seattle-based company reported earnings of $ 6.2 billion, or $ 6.12 per share, for the three-month period ended September 30, compared with $ 6.3 billion or $ 12.37 per share Share per share in the same period last year. Revenue grew 15% to $ 110.8 billion.
Analysts surveyed by FactSet expected average quarterly revenue of $ 111.55 billion and earnings per share of $ 8.90.
In July, Amazon warned that third-quarter sales would be between $ 106 billion and $ 112 billion. Still, the quarter is the fourth consecutive quarter with over $ 100 billion in revenue.
Amazon is one of the few retailers to be successful during the pandemic. With physical stores selling non-essential goods temporarily or permanently closed, people stuck at home turned to Amazon for everything from groceries to cleaning supplies.
However, Amazon is seeing a slowdown in sales growth as the company battles last year’s giant pandemic shopping bombs. The slowdown also reflects that people, particularly in Europe and the US, are more mobile and doing other things besides shopping online.
Amazon’s other stores also expanded. Revenue from its cloud computing business, which supports the online operations of Netflix, McDonald’s, and other companies, rose 39% for the quarter. And at its unit, which includes the advertising business, where brands pay to have their products displayed first when shoppers search the site, sales grew 49%.
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