Amazon shares slide 5% after it forecasts sales below estimates

Amazon.​com forecast current-quarter sales below estimates and said cautious retail consumers are seeking out cheaper options for purchases, sending its shares down 5 per cent on Aug 1.

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The after-hours stock drop came despite second-quarter profit and cloud computing sales that beat Wall Street estimates.

Amazon's chief financial officer Brian Olsavsky said in a call with reporters that consumers were being more cautious with their spending. "They are looking for deals," he said, noting that lower priced products were selling briskly.

Chief executive Andy Jassy, on a call with analysts, said that customers were trading down on price when they could.

Amazon's online stores sales rose 5 per cent in the second quarter to US$55.4 billion (S$73.8 billion), compared with a 7 per cent gain in the first quarter.

One analyst said the softer retail sales were driving the postmarket shares sell-off.