Amazon on Thursday warned investors its sales growth would decelerate in the third quarter - as more consumers leave their homes and return to brick-and-mortar stores.
It’s a slow start for new CEO Andy Jassy – who took over for Jeff Bezos earlier this month.
Last year, when consumers were at home due to the health crisis, Amazon posted record profits, drawing more than 200 million Prime loyalty subscribers, and recruiting over 500,000 workers to keep up with surging demand.
Now, the company's breakneck growth is starting to subside.
Revenue climbed 27% to $113 billion for the second quarter ended June 30, shy of analysts' estimates - according to IBES data from Refinitiv.
For the third quarter, Amazon expects sales will grow at most 16%.
Despite the sales miss - Amazon did post massive profits - up 48% to $7.8 billion, it's second-largest quarterly result ever.
Still, the top job Jassy inherited has never been bigger and more complex.
Last quarter Amazon announced a deal to buy the film studio MGM for $8.5 billion, expanding in Hollywood at the same time as it is running a grocery chain, building a healthcare business and facing scrutiny from regulators worldwide.
Shares of Amazon, which is only $170 billion away from joining the $2 trillion market cap club, were down 7% in extended trading.