The weak forecast by Amazon was due to the distraction of the Olympics and the Trump assassination attempt.

• World events such as the Olympics and the election are causing Amazon to struggle with forecasting the third quarter, as consumers are distracted.
• During those events, we observe varying traffic patterns, as stated by CFO Brian Olsavsky during a call with reporters.
• Analysts' expectations were not met by the company's guidance for the current quarter.

The unusually busy news cycle is one of the factors contributing to its weak revenue forecast.

During a call with reporters discussing Amazon's second-quarter earnings report on Thursday, CFO Brian Olsavsky stated that the company anticipates a decline in online shopping this quarter due to consumer distraction caused by the ongoing Paris Olympics and the upcoming 2024 presidential election.

Last month, at a Pennsylvania rally, there was an attempted assassination of former President Donald Trump, which occurred right before the Republican National Convention.

""News events can distract customers from their attention," Olsavsky stated."

In the third quarter, Amazon anticipates revenue to be between $154 billion and $158.5 billion. However, the midpoint of this range, $156.25 billion, did not meet the consensus estimates of $158.24 billion. Due to this disappointing guidance and a revenue miss in the second quarter, Amazon's shares dropped more than 7% in extended trading.

While the chaotic news cycle may influence consumer spending patterns, it was not discussed during the quarterly earnings call with analysts by company executives.

One major concern they tackled during the call was the ongoing economic challenges that cause shoppers to remain cautious with their spending. CEO Andy Jassy stated on the analyst call that consumers are purchasing lower-priced items, resulting in a lower average selling price (ASP) for products sold.

"Jassy stated that customers tend to prioritize lower-priced options when possible, while higher-priced, discretionary items like computers, electronics, and TVs are growing faster for Amazon than the industry average, but at a slower rate compared to a stronger economy."

Olsavsky stated on the media call that consumers are remaining cautious and are more focused on purchasing everyday essentials, which accounts for Amazon's revenue falling short in the quarter.

Similar to other e-commerce companies, CEO Josh Silverman of Warby Parker observed a slowdown in home goods purchases due to inflation and a stagnant housing market.

NBCUniversal gains from Amazon's loss during the Olympics as the company, parent to CNBC, reports at least $1.25 billion in ad revenue from the Paris Games.

Nearly half a billion dollars in sponsorship for the 2024 Summer Games is from first-time advertisers, according to a statement by the company on Wednesday.

Olsavsky states that the short-term blip on Amazon's forecast is due to a difficult situation.

He stated that purchases often get postponed, and individuals will eventually return to purchase what they had initially intended.

NBCUniversal, the parent company of CNBC, owns NBC Sports and NBC Olympics. NBC Olympics holds the U.S. broadcast rights to all Summer and Winter Games through 2032.

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