Amazon.com Inc. shares plunged more than 12 percent on Friday after the company reported slower online sales growth in the second quarter and said consumers were looking for cheaper shopping options.
The company's shares were trading at around $165, among the biggest decliners on the Nasdaq.
Amazon is expected to lose about $188 billion in market value if the losses continue.
"The consumer spending trends that its retail peers are experiencing appear to have finally affected Amazon's P&L," said Michael Morton, an analyst at MoffettNathanson.
Amazon's online store sales rose 5 percent in the second quarter to $55.4 billion, compared with 7 percent growth in the first quarter.
Competition has intensified in the online retail space from Timo and Shein, which sell a wide range of goods at cheap prices directly from China.
Comments