Amazon’s new boss is facing a sales slowdown as the breakneck pace of expansion fuelled by stay-at-home shopping eases.
Andy Jassy, who took over from founder Jeff Bezos earlier this month, saw shares fall 7% in after-hours trading as his first set of results as chief executive revealed revenues short of Wall Street expectations.
Second quarter sales at the online retail giant rose 27% compared with a year ago to $113.1bn while profits rose 48% to $7.8bn.
Image: Andy Jassy has taken over as chief executive
But the sales figure missed analysts’ estimates of around $115bn and growth was down from 44% in the first quarter.
A forecast for the current July-September period pencilled in revenue growth of no more than 16%.
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Amazon also pointed to a profit range which will be lower than the third quarter a year ago.
The company’s finance chief Brian Olsavsky said it faced tough comparisons with 2020 when many consumers were stuck at home and reliant on e-commerce.
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In the US and Europe, people were now out and about “doing other things besides shopping,” he said, adding that he expects the lower pace of sales of growth to continue over the next few quarters.
It comes as new boss Mr Jassy tries to get to grips with a sprawling empire that now encompasses a cloud computing division, store chain network Whole Foods, a new healthcare business, and a film and TV arm that is in the process of buying MGM studios – on top of the core retail operation.
Image: Founder Jeff Bezos handed over to Mr Jassy earlier this month Pic: AP
During the pandemic, Amazon ramped up its growth, building the number of members of its Prime subscription service – which offers quicker deliveries as well as video streaming – to more than 200 million and recruiting over 500,000 workers to keep up with surging demand.
In North America, its biggest market, net sales climbed by 43% in the second quarter of last year as lockdowns first took their toll.
A year later, sales were still rising strongly, but by 22% – half the pace.
Nicholas Hyett, equity analyst at Hargreaves Lansdown, said: “Amazon is increasingly bumping up against the law of large numbers – particularly in US retail.
“When you’re only selling $1,000 of product a year, boosting sales by 40% is easy.
“When your annualised sales reach $400bn, finding an extra $160bn of sales is pretty difficult.”
Amazon results come at the end of a busy period of earnings statements that have revealed contrasting fortunes for America’s tech giants as pandemic restrictions draw to an end.
The likes of Google owner Alphabet and Twitter are enjoying the benefits of reopening as advertisers pay for exposure on their platforms as they seek to cash in on pent-up demand.
But elsewhere, Netflix has seen subscriber growth slow after last year’s record additions.
Derek Chauvin – the ex-police officer jailed over the murder of George Floyd – was stabbed 22 times with an “improvised knife” in prison, it has emerged.
The 52-year-old, a former member of the Mexican Mafia, told FBI agents he attacked Chauvin on that date as a symbolic connection to the Black Lives Matter movement.
He also revealed he had been thinking about targeting Chauvin for over a month – and said he would have killed the high-profile inmate had officers not intervened so quickly.
Image: Derek Chauvin during his trial
“Life-saving measures” were performed after the stabbing in the prison library, and Chauvin is “expected to survive”.
Turscak has also been charged with three counts of assault and could face an additional 60 years behind bars if convicted. He had been due to complete his current sentence by 2026.
He had led a faction of the Mexican Mafia in Los Angeles during the late 1990s, and went by the nickname “Stranger”.
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The former gang member later became an FBI informant and recorded conversations with his associates in the hope of receiving a lighter sentence.
Chauvin had been moved to the jail in Tucson, Arizona last August – and at the time, his lawyer had called for him to be kept away from other inmates for his own protection.
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2021: Moment Chauvin was jailed
The disgraced cop was convicted of second-degree murder and violating George Floyd’s civil rights after pressing a knee on his neck for nine-and-a-half minutes outside a store in Minnesota in 2020.
Mr Floyd had been suspected of using a counterfeit $20 (£16) bill, and footage from bystanders captured him telling officers “I can’t breathe”.
His death sparked protests worldwide and a national reckoning with police brutality and racism.
Los Angeles police are hunting a potential serial killer after three homeless people were shot dead in separate incidents.
The murders took place over a few days – between 26 and 29 November – and the city’s mayor warned rough sleepers on Friday: “Try not to be alone tonight.”
CCTV has been released of the suspect, who’s described as male and probably wearing a hoodie; as well as a dark-coloured vehicle he might be using.
Image: Pic: LAPD
LA police chief Michel Moore said a special task force had been set up “to uncover the identity of a potential serial killer preying on the most vulnerable in our community”.
The murders share similarities: all three happened in the early hours and all suspects were homeless and alone.
Mr Moore said all were shot as they were sleeping or preparing to bed down for the night.
The Los Angeles Times named them as Jose Bolanos, 37, Mark Diggs, 62, and a 52-year-old man who’s yet to be named.
Mayor Karen Bass said she had met with the housing department and homeless service and that they are doing “all we can to make shelter and services available”.
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“Our message to our unhoused community is clear – try not to be alone tonight,” she said.
The mayor added: “To the many Angelenos who have friends or family who are unhoused, please let them know the danger that exists.”
Republican congressman George Santos has been expelled from the House of Representatives after a report found “overwhelming evidence” he misused campaign donations.
Mr Santos was ousted 311-114 in a bipartisan vote – only the sixth time a member has been kicked out of the House since it was founded in 1789.
Two-thirds of members must support the move – but an excoriating report by the House ethics committee that accused him of breaking federal law appeared to seal his fate.
The 35-year-old led his own defence on the floor of the House and said he would “not stand by quietly”.
Speaking the evening before the vote, he said: “The people of the Third District of New York sent me here. If they want me out, you’re going to have to go silence those people and go take the hard vote.”
Mr Santos argued it would set a precedent that would make expulsions more common.
Three previous cases involved disloyalty to the Union during the American Civil War, the remaining two were after politicians were convicted of federal crimes.
A congressional investigation found he charged his campaign account nearly $4,000 (£3,151) for spa treatments, including Botox.
He also spent more than $4,000 at designer store Hermes and made “smaller purchases” from the OnlyFans site – best known for sexual content.
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Image: Protesters had been calling for Mr Santos to be expelled
As the outcome of Friday’s vote became clear, Mr Santos put his coat over his shoulders, shook hands with some members who voted against his expulsion and exited the chamber.
The House Speaker solemnly instructed a clerk to inform New York’s governor that his seat was now vacant.
Mr Santos was in his first term and had been previously feted as an exciting prospect after he flipped a district from the Democrats in November 2022.
But the committee launched a probe in March after reports he lied about having Jewish ancestry and his grandparents fleeing the Nazis, working at elite investment bank Goldman Sachs, and his college degree.
It lasted eight months and found “overwhelming evidence” of law-breaking – and Mr Santos has now admitted making up much of his biography.
Image: Minority leader Hakeem Jeffries was one of many supporting the expulsion. Pic: AP
The US attorney’s office indicted him in May, accusing him of cheating donors, laundering campaign funds for his own personal use, and lying to Congress.
It alleged he stole donors’ identities and used their credit cards to make tens of thousands in authorised charges.
Mr Santos has pleaded not guilty to the charges and his trial is scheduled for September 2024.
“Mr Santos is not a victim. He is a perpetrator of a massive fraud on his constituents and the American people,” said Susan Wild, the top Democrat on the ethics committee.
The last person to be kicked out of the House was Democrat James Traficant over a criminal corruption conviction in 2002.
New York state governor Kathy Hochul now has 10 days to call a special election for Mr Santos’s seat.