Investors dump Amazon as economy concerns grow

Investors sold off Amazon shares as the firm's latest update further fuelled fears about the economy.

Increased competition from rivals and shoppers' return to outdoor activities post-pandemic led to the company missing analysts' expectations.

The e-commerce giant reported sales rose 15% to $127.1bn, but its international business shrank and growth slowed in its lucrative cloud services unit.

Shares fell 18% in after-hours trade.

Amazon also forecast far weaker growth than expected in the upcoming Christmas season, adding to jitters about an economic slowdown.

Amazon saw a boom in business during the pandemic, as more activity moved online. But over the last year sales growth has softened significantly, as consumer priorities shift and the cost of living rises.

Amazon founder Jeff Bezos, who remains chairman of the company, recently warned about the signals coming from the economy, writing on Twitter that it was time to "batten down the hatches".