Amazon said it projects revenue this quarter of $116 billion, a lower estimate than analysts’ average of $125.5 billion, according to Refinitiv.
Although AWS generated 57% growth in operating income, which meant revenue of $6.5 billion, Amazon’s total operating income fell to $3.7 billion.
Like Google and Facebook earlier this week, Amazon attributes much of the slowdown to macroeconomic conditions and Russia’s invasion of Ukraine.
“The pandemic and subsequent war in Ukraine have brought unusual growth and challenges,” Amazon CEO Andy Jassy said in a statement. He added that the company is “fully focused” on offsetting costs in its fulfillment network now that staffing and storage capacity are at normal levels.
Amazon is the latest company to join the pack in reporting disappointing ad revenue. Still, the segment grew 23% year over year.