In a disappointing earnings report, Amazon announced weaker-than-expected revenue for the second quarter, causing its stock to slide in extended trading. The company reported earnings of $1.26 per share, surpassing the predicted $1.03 per share by analysts. However, revenue came in at $147.98 billion, slightly lower than the estimated $148.56 billion.

Despite beating earnings expectations, Wall Street had its eyes on specific numbers within Amazon's business segments. Amazon Web Services (AWS) generated $26.3 billion in revenue, exceeding the expected $26 billion. The advertising sector also performed well, bringing in $12.8 billion, though falling slightly short of the anticipated $13 billion.

Looking ahead, Amazon issued a forecast for the current quarter, projecting revenue to be between $154 billion and $158.5 billion. This represents a growth rate of 8% to 11% compared to the same period last year. However, this forecast falls below the average analyst estimate of $158.24 billion.

Moreover, third quarter operating income is expected to range from $11.5 billion to $15 billion, compared to $11.2 billion during the same period last year. Analysts surveyed predict a higher operating income of $15.3 billion.

Amazon faces challenges in its core retail business, as competition intensifies. Discount sites such as Temu and Shein, which allow Chinese merchants to sell inexpensive items to U.S. consumers, pose a significant threat. As a result, sales in Amazon's online stores segment only grew by 5% year over year. On the other hand, third-party seller services, including commissions and fulfillment and shipping fees, experienced faster growth, expanding by 12% during the quarter.

This news is developing, and updates will be provided as they become available. Investors and market analysts will closely observe how Amazon addresses its slowing retail growth and the impact of increased competition in the coming months.