After mayhem caused by the coronavirus pandemic, people are gradually returning to their normal lifestyle. The majority have already been vaccinated. So, lockdown measures have been eased. Shops, cinemas, and cafes are opening their doors. People can finally go outside and spend their money on different things. For this reason, economists are trying to figure out what companies will gain from this situation and lose. Coronavirus restrictions have affected companies in different ways. For Amazon and other e-commerce giants, lockdowns have become a tailwind, causing a boom in revenue.
However, life is getting back to normal. It is more and more difficult for Amazon to maintain the same profit growth. The largest US retail company may log a sharp drop in net profit as people now prefer to spend more time outside. Curiously enough, the company flourished in the lockdown periods. Alas, this time had passed. There is a chance that the Delta variant may cause even greater havoc. For what it is worth, Amazon needs to adjust to the after-pandemic reality.
In the first quarter, its revenue climbed by 44%, while in the second quarter, it dipped to 27%. According to Amazon's calculations, in the third quarter, its revenue may not exceed 16%. After such news, the shares of the online commerce giant fell by 7%.
Amazon Chief Financial Officer Brian Olsavsky admits that the revenue is likely to continue to decrease until the end of the year in the best-case scenario.
