Two Prime Days were one of the bets that Amazon had to try to enter more capital into its company, however, it maintains its streak of poor results in its quarterly reports.
Under Andy Jassy, who took over from founder Jeff Bezos in July 2021, the e-commerce company has responded to rising expenses by aggressively cutting costs in numerous divisions in recent months, but has failed to been enough efforts. The company’s revenue was $127 billion, slightly less than Wall Street expected.
The company has had a 34% drop in its shares so far this year, but according to some analysts, it is the best positioned technology company in the face of the crisis that other companies such as Meta or Alphabet are experiencing.
Even Rob Sanderson, a manager at Loop Capital, recommends buying Amazon stock in a recent note to clients. “Amazon is the lowest in the funnel,” referring to how other tech companies are reporting less revenue.
Wall Street will also be paying close attention to Amazon’s fourth quarter guidance. The forecast could indicate how much demand Amazon expects to see during the holiday shopping period. Analysts are already bracing for a lackluster season, with online sales expected to grow just 2.5%, according to Adobe.
Earlier this month, Amazon organized Prime Early Access, where pre-Christmas purchases were boosted, while the AWS vertical grew 27%, which represented revenues of 205,000 million dollars.
“In the last four months, employees in our consumer businesses have worked tirelessly to put together two events, customer response to both events was quite positive, and it’s clear that, particularly during these uncertain economic times, customers appreciate the Amazon’s continued focus on value and convenience,” said Andy Jassy, Amazon CEO.
