Amazon Reports Drop In Prices And Slower Growth In High-Ticket Items Compared With 'Normalized Economy,' But Faster Delivery Is A Silver Lining
Portfolio Pulse from Ananya Gairola
Amazon reported a shift in consumer preferences towards lower-priced items and everyday essentials, leading to a drop in average selling prices (ASPs). Despite slower growth in high-ticket items, Amazon's faster delivery services have boosted sales of everyday essentials. The company reported second-quarter net sales of $148 billion, a 10% increase year-over-year, but fell short of the Street consensus estimate. Amazon shares dropped 6.88% in after-hours trading following the announcement.
August 02, 2024 | 5:43 am
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Amazon reported a shift in consumer preferences towards lower-priced items and everyday essentials, leading to a drop in ASPs. Despite faster delivery services boosting sales, the company's Q2 net sales of $148 billion fell short of expectations. Amazon shares dropped 6.88% in after-hours trading.
The shift towards lower-priced items and everyday essentials indicates a change in consumer behavior, which has led to a drop in ASPs. Although Amazon's faster delivery services have boosted sales, the company's Q2 net sales fell short of expectations, leading to a significant drop in share price.
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