Amazon shares: outlook threatened by darkening economic picture
Amazon’s Q2 results look robust, with its e-commerce and cloud computing divisions faring well. But, can the online retail giant stick to its outlook? IGTV’s @AngelineOng investigates.
(Video Transcript)
Dark clouds on horizon
Amazon's second quarter sales growth and profit may have looked robust, and its growth engines, e-commerce and cloud computing also fared well. But the economic horizon is darkening. Credit and consumption markers are weakening, and some forward indicators are also flashing red.
Maersk, the shipping giant, is warning of a steeper decline in global demand for shipping containers by sea this year, prompted by muted economic growth and customers reducing inventories.
Tech clients spending less
WPP , meanwhile, said lower spending from tech clients caused its revenues in North America to fall in the quarter. Amazon's shares, don't forget, are also coming off very lofty levels. They've risen some 50% year-to-date, so all in all, a really tough hill to climb if economic indicators and data point towards a weakening economy.
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