Amazon's Slowing Online Retail Growth Pressuring Stock Price

April 29, 2022 By Valantis Aristeidous Tags: RETAIL

Amazon, one of the companies that benefited the most from the pandemic as shoppers shifted towards online shopping, is now experiencing a significant slowdown as consumer behavior started to change.

On Thursday April 28, 2022 the company reported $116.4 billion in revenue for the quarter that ended on 3/31, up 7.3% from a year earlier however it was Amazon’s slowest quarterly growth in years: down from 44% revenue increase in 1Q21. Advan’s data shows the negative growth in Amazon’s employee traffic of +7.6% Y/y across all of its warehouses in the US and in line with the year over year revenue growth of +7.3% for the first quarter of 2022 which is nowhere near the 44% increase of the same quarter last year.

Amazon warehouses

For the second quarter of 2022, Advan’s employee counts indicate that the growth is slowing even further with preliminary data measuring +1.4 Y/y. The company also failed to meet Wall Street’s expectations putting extra pressure on Amazon’s shares which fell 10% after the earnings announcement.

Employee traffic at Amazon Warehouses has 0.92 correlation with the company’s the top-line revenue over the last 10 fiscal quarters.

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About Advan

Advan is the leader in the financial and real estate industries, enabling participants to analyze foot traffic data across multiple sectors, including retail, hospitality, consumer services, energy, technology, healthcare, REITS, financials and others. Advan derives its datasets using multi parameter models that analyze cellphone location data crossed with curated geofenced areas.

Top tier institutional investors spanning from quantitative hedge funds to fundamental asset managers have been the main consumers of Advan’s products.