Amazon sees a massive drop in stock price as investors panic over the economy

As a result of the most recent update provided by the company, investors dumped their Amazon shares out of fear for the economy and Amazon sees a massive drop.

The company failed to meet the expectations of industry analysts as a result of increased competition from its rivals and consumers’ increased interest in engaging in outdoor activities after the pandemic.

The e-commerce giant reported a 15% increase in sales, which totaled $127.1 billion; however, its international business declined, and growth in its profitable cloud services division slowed.

Amazon sees a massive drop as after-hours trading resulted in a decline of 18% for the stock

Amazon’s forecast for significantly lower growth than expected for the upcoming Christmas season has added fuel to the fire for those concerned about the possibility of an economic slowdown.

As a result of more people shifting their activities online during the pandemic, Amazon’s business experienced a surge. As a result of shifting consumer priorities and rising costs of living, however, growth in sales has slowed significantly over the course of the past year.

Recently, Amazon founder and current company chairman Jeff Bezos issued a warning regarding the signals coming from the economy. He wrote on Twitter that it was time to “batten down the hatches” in response to the warning.