Amazon (AMZN) shares tumbled Friday, a day after the company posted second-quarter revenue that missed estimates and the company’s guidance for the third quarter fell short of what analysts had expected.
While a number of analysts lowered their price targets for Amazon following the company’s earnings report, they remained bullish on the company’s outlook, anticipating growth from Amazon Web Services (AWS) and margin improvement for Amazon’s retail business.
Amazon CFO Brian Olsavsky said in Tuesday’s earnings call that Amazon has seen consumers be “careful with their spend” and look for the lowest-cost options, putting pressure on growth of Amazon’s retail segment.
A number of Amazon’s competitors like Target (TGT) and Walmart (WMT) have also noted in recent earnings calls earlier this year that discretionary spending has fallen as inflationary pressures weighed on consumers.
Still, margins in Amazon’s retail segment could stand to benefit from steps Amazon is taking to improve its delivery network and lower costs, …