Amazon Issues a Profit Warning and Sees a Drop in Its Stock
Amazon’s efforts to increase revenues might not be successful because of rising inflation and declining consumer demand.
Given that early Christmas promotion does little to increase sales growth and that labor and shipping costs are continuing to rise, Amazon.com Inc. has issued a warning that expenditures could decimate its earnings for the current quarter. 에볼루션미니게임
Following the e-commerce behemoth’s dismal projection on Thursday for the holiday quarter ending in December, shares dropped 19 percent in after-hours trading. Some of the greatest buying occasions for US retailers occur during the final three months of the year, including Halloween, Thanksgiving, and Christmas.
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Amazon wants big money everywhere. It has increased its Prime streaming service by 43% year-over-year in Europe this quarter. It forces fuel and prices to mark and some customers for the first time did not one but two sales events in one year: Prime Day in July and Prime Early Access Sale in October.
These efforts may not pay off. Amazon’s net sales were $127.1 billion in the third quarter that ended on September 30, slightly below analysts’ expectations of $127.46 billion, according to IBES data from Refinitiv. .
For the holiday quarter, the world’s largest online retailer is forecasting sales between $140 billion and $148 billion. Analysts expected $155.15 billion.
Amazon Web Services, the company’s top-grossing database and cloud platform that powers businesses, hasn’t helped much. Although it provides important operating income, like Microsoft, Amazon failed the plan.
It boosted the third-quarter cloud sales by 28% to $20.5 billion, from analysts’ expectations of more than $21.1 billion. In the face of high prices and falling consumer demand, new CEO Andy Jassy has been struggling to control costs across Amazon’s various businesses.
For months, the online retailer has reduced warehouse space and avoided filling certain vacancies. It announced that it will close its health service by the end of the year and scale back a long-standing effort to deliver goods via small self-driving cars.
His peers saw few positives. In the retail space, online shopping in the United States is expected to grow rapidly over the next few years this holiday season. Results in the tech industry were also not good this week for cloud rivals Microsoft Corp and Alphabet Inc’s Google, adding to recession fears. US consumer confidence changed in October. 카지노
Amazon’s net profit fell to $2.9 billion in the third quarter, ahead of analysts’ estimates of a profit of $2.2 billion, according to IBES data from Refinitiv. In a statement, Jassy said: “It’s clear that a lot is being done in the big ecosystem, and we have to adjust our investment so that it can be improved without taking risks. Our main long-term strategic plan.”
Global shipping value rose 10% in the third quarter to $19.9 billion.
An Amazon spokesperson has not confirmed or denied that the company and its developer are asking to be let go.
“Amazon is a strong company and we are always reviewing new sites,” said spokeswoman Jenna Hilzenrath. “We consider various factors when deciding where to develop future sites to better serve customers, however, it is our policy not to comment on our road map in the future.”
On Friday, after CITY reported that Amazon was asking to be released, the company released a statement that read:
“Amazon has different jobs at different levels in the United States and we are happy to support the creation of job opportunities for residents of these areas, even before the launch of our company. During the construction process, our developers and general contractors use an open bidding process available to any qualified person who has expressed an interest in the work; this includes non-members and members, regional contractors, regional and countries with relevant experience and skills. As always, we follow all local and state laws and procedures.”
In recent years, Amazon has built warehouses and fulfillment centers across the state, including in Henrietta and Greece.
The company and its developer said they plan to invest $412 million to build a 2.6 square foot facility on Manitou Road, near Route 531 and Gates. In January, COMIDA approved $134.7 million in property, mortgage and sales taxes for the project. Amazon announced plans to hire 1,000 people to work at the company. Liss said companies are especially concerned about finding enough workers to pour concrete because of the workload. He added that the district will negotiate with Amazon and its manufacturer if they file a bankruptcy case. But two members of the COMIDA company met the news of Amazon’s request with a cold shoulder, who thought that one of the richest companies in the United States could try to undermine the demands of local workers.
“I think we’ve come out pretty good,” said Jay Popli, a board member and vice president of Popli Design Group, Penfield’s engineering and research firm. “You ask for these benefits, these are the rules. And what they say is, “We’ll take care of that.”
It won’t be the first.