Amazon’s disappointing earnings reports dragged shares of Wayfair, Shopify, and eBay lower Tuesday morning. Retail e-commerce stocks were tumbling Friday as Amazon’s weaker-than-expected first-quarter results signaled a slowdown in the tech giant’s online store business.

Wayfair, Shopify and eBay stocks have been dragged lower by Amazon’s sales disappointment. The e-commerce giant reported revenue of $52.9 billion in its first quarterly report, missing estimates of $53.72 billion. Investors had expected more from Amazon after it announced that it would invest billions into creating its own branded fashion lines and add 1 million U.S. square feet to its fulfillment centers, even though the company continues to grow revenue at an impressive rate of 35%.

Amazon Expectations

Amazon’s most recent earnings report shows that Amazon is still a major player in the ecommerce market. The company’s online sales fell below Wall Street’s consensus of $51.9 billion. The company is projecting total net sales of $116 billion to $121 billion for Q2, largely in-line with expectations.

Shopify Stock

Shopify Stock and Wayfair Stock are down more than 10% in early trading Friday after Amazon.com's sales growth fell short of expectations. Shopify stock is down 6.28% during the pre-market session, which is the worst performer on the index this morning. Revenue for the second quarter was $957 million, up 42% year-over-year and above the Thomson Reuters consensus estimate of $940 million. Ecommerce revenue grew 45%, while Shopify Plus customers increased to over 18,000 from 11,100 a year earlier.

Shopify is the premier multi-channel cloud-based commerce platform for small and medium-sized businesses. With the Shopify platform, you can easily launch your own online store to sell physical products, digital products like videos and music, or services to customers around the world.

English: Co-founder of , at the Tech Crunch40 conference. (Photo credit: Wikipedia)

Marc Andreessen, a well-known venture capitalist from Silicon Valley, recently endured attacks from Carl Icahn. Due to a possible conflict of interest, Icahn asked Andreessen to step down from his respected position as one of EBay's board members.

In a strange turn of events, Icahn attempted to gain support for his nominees by encouraging fellow shareholders to take his side . He was concentrating his efforts on governing the corporate structure of EBay. In short, he is trying to convince this auction giant to spin off PayPal, their successful payments business.

The Senate's side of the Capitol Building in DC. (Photo credit: Wikipedia)

Senate Bill On Internet Taxes Passes First Hurdle

Recently, the United States Senate passed a bill concerning Internet tax collection. Online retailers currently don't have to collect sales tax from every single sale. If a person places an order from a state where that business doesn't have any physical presence, then the company doesn't need to collect taxes. Unfortunately, states lose out on billions of dollars in taxes because of this loophole.

eBay Rises 7% Overnight on Earnings

The online auction business eBay rose over 7% in after-hours trading on Wednesday after a better than expected earnings report. Profit for the third quarter rose 23% compared to a year ago. The main earnings driver for the company was its online transaction processor PayPal. Current quarter estimates were also increased by the online auction operator which made investors snap up shares quickly.