Amazon (AMZN.US) fell more than 12% after the company's third-quarter guidance fell short of expectations.

Amazon (AMZN.US) shares fell on Friday, down more than 12% to $161 at the time of writing, after the company issued a disappointing earnings forecast for the third quarter. Amazon said it expects third-quarter revenue to be between $154bn and $158bn, which would be a median of $156.25bn, below the consensus estimate of $158.24bn.

Amazon executives said that the Trump presidency and the Olympics had taken consumers' minds off shopping, causing them to postpone or cancel non-essential purchases. They also acknowledged that economic weakness was a factor in consumer sentiment. Amazon executives said that consumers remained cautious about spending as the US economy weakened. Chief Executive Andy Jassy said that consumers were now more inclined to buy cheaper goods, meaning that the average selling price (ASP) of products was lower.