Analysts Watch How Inflation, Consumer Spending Affects Sales - GeekWire

An Amazon delivery truck is parked in front of the company's headquarters and Amazon Go store in Seattle. July 2021. (GeekWire Photo / Kurt Schlosser)

Amazon reports second-quarter earnings on Thursday afternoon, and analysts will be watching closely how persistent inflation is affecting the company's sales and earnings numbers.

Revenue is expected to be $119 billion, up 5% year over year, with earnings per share of $0.14 versus $15.12.

Amazon CEO Andy Jassy cited inflation and supply chain pressures in the company's first-quarter earnings report, which posted the slowest rate of revenue growth in more than two decades. Shares fell more than 10% after April's Q1 results.

Amazon could report lower-than-expected second-quarter sales due to macroeconomic challenges, according to analysts at Wedbush.

"While rising inflation may benefit Amazon's retail business by leading to higher prices and marketplace fees (between 8% and 15%), we believe that...

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