Amazon’s stock is down due to a revenue shortfall and increased costs 

 Amazon’s stock is down. It is difficult to feel sorry for a firm with a market capitalization of $1.75 trillion, so we will not. However, in after-hours trading this afternoon, Amazon stock is losing a little steam. After the bell today, Amazon released its Q3 2021 results. It is revealing its recent performance. This quarterly report includes a top-to-bottom revenue and earnings miss.

The e-commerce and cloud computing behemoth reported $110.8 billion in revenue. This is around 15% high from the last year. In the same quarter, Amazon earned $3.2 billion in net income or $6.12 per share.

Analysts predicted $111.6 billion in revenue and $8.92 in earnings per share for the corporation. On a year-over-year basis, the company’s net income dropped by 49%.

 Amazon’s stock is down just over 5%

Amazon’s Q3 results fell short of expectations. The company’s AWS unit did post-increasing revenue growth on a year-over-year basis. They were giving the company’s followers something to cheer about. Its Q4 comments may eclipse its lagging statistics. In the company’s results digest, Andrew Jassy, the company’s new CEO, stated:

They expect to incur several billion $ in Consumer business costs in Q4. Furthermore, they are dealing with labor shortages and rising wage costs. They are also facing supply chain issues and rising freight and shipping costs. Besides, they are reducing the impact low on customers and selling partners as low they can.

Amazon Plans to deal with the downfall of Stocks.

The CEO characterized the impending costs as customer-forward. He suggests that it is appropriate to take short-term losses in exchange for long-term gains. A few dozen billion dollars reduced the company’s market valuation. Because investors were not satisfied with the promise of future cash flows.

Nevertheless, Amazon recorded a net income of more than $1 billion each month in Q3. It is difficult to feel sorry for the Amazon’s stocks . So $4.5 billion in more revenue and $1.5 billion in new operating income year over year. For those interested, AWS revenue and operational expenses climbed by roughly 39% yearly. 

These figures are noteworthy because Amazon Web Services (AWS) is the company’s fastest-growing segment. At the same time, Amazon’s e-commerce operations gain most of the attention. Its quieter cloud division is increasingly driving development. 

Leave a Comment