Amazon.com Inc. emerged as the essential store for homebound shoppers during the coronavirus pandemic, propelling its sales and profits to new highs. Now, the rush online is slowing down as vaccinated consumers peel away from computers and smartphones and revert to old habits like traveling and dining out.
The world’s biggest e-commerce retailer on Thursday reported sales and gave a forecast that fell short of expectations. It marked the first time Amazon had missed quarterly sales estimates since 2018.
The Seattle-based company invested billions to operate through the pandemic while minimizing the spread of COVID-19 through its facilities and hiring hundreds of thousands of workers to meet crushing demand. New Chief Executive Officer Andy Jassy, who took the helm from founder Jeff Bezos on July 5, has to convince investors that Amazon continues to be a good long-term bet even though revenue growth is slowing and the company faces heightened scrutiny from regulators in the U.S. and Europe, its biggest markets.