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E-commerce giant Amazon released figures for the third quarter after closing time on Wall Street on Thursday. The company did not meet market expectations and the share falls 4.2 percent in aftermarket.
- Revenue was $ 110.8 billion in the quarter, compared to $ 96.1 billion in the same period last year. In advance, a turnover of 111.8 billion dollars was expected, according to estimates from Bloomberg.
- Operating profit was $ 4.9 billion, compared to the expected $ 5.6 billion. In the same period last year, operating profit ended at $ 6.2 billion.
- Earnings per share were $ 6.12, compared to the expected $ 8.96. In the same period last year, this was $ 12.37.
Expect billions in extra costs
The company also forecasts disappointing figures for the fourth quarter. They write in the report that they expect revenues in the fourth quarter to be between 130 billion and 140 billion dollars. According to CNBC, analysts have expected revenue to increase to $ 142.1 billion in the quarter.
Amazon CEO Andy Jassy writes in the report that the company expects several billion dollars in additional costs in the fourth quarter, due to labor shortages, increased labor costs, the global supply crisis and increased shipping and shipping costs. These challenges are ongoing as the e-commerce giant enters the fourth quarter, with big and important trading days such as Black Friday and the Christmas season.
– It will be expensive for us in the short term, but it is the right priority for our customers and partners, Jassy writes.
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Expected weaker growth
The demand for home delivery and entertainment during the pandemic has made Amazon one of the corona’s big winners. The company has had over $ 100 billion in sales in the previous three quarters.
Andy Jassy took over as CEO of Amazon on July 5. (Photo: Mike Blake / Reuters / NTB)
In its report for the second quarter, the company wrote that they expected revenues to fall in the third quarter. They expected revenue to be between $ 106 billion and $ 112 billion, and operating profit to be between $ 2.5 billion and $ 6 billion. The guide assumed about a billion dollars in costs related to the corona pandemic.
This sent the stock price right down at the end of July: Amazon stock fell 7.6 percent and around $ 75 billion in market value was shaved off in a matter of hours.
The world’s second richest
Amazon is one of the world’s largest companies measured in market value, which on Thursday is 1756 billion dollars, equivalent to 14.614 billion Norwegian kroner at today’s exchange rate.
Amazon founder Jeff Bezos announced earlier this year that he is stepping down as CEO of Amazon. In July, Andy Jassy, former head of Amazon Web Services, took over as chief executive.
Bezos is still the largest owner in Amazon and owns just over 51 million shares in the company.
Bezos has long reigned as the world’s richest person, but was caught again this year by Tesla founder Elon Musk, after rising in the Tesla share. According to the Bloomberg Billionaire Index, Bezos is worth around 196 billion dollars, equivalent to 1634 billion Norwegian kroner at today’s exchange rate.
2020 gave them the biggest jump in wealth in history Despite all the challenges of the world in 2020: The 500 richest had the biggest fortune jump in the history of Bloomberg’s billionaire index. Jeff Bezos and Elon Musk are two good examples. 01:14 Published: – Apple will also present its quarterly figures on Thursday night. These are the last of the major technology companies to present figures this season. So far, nearly 40 percent of the companies listed on the broad S&P 500 index in the United States have presented figures for the quarter, and more than 80 percent of them beat market expectations, according to calculations from CNBC.(Terms)Copyright Dagens Næringsliv AS and / or our suppliers. We want you to share our cases using a link, which leads directly to our pages. Copying or other use of all or part of the content may only take place with written permission or as permitted by law. For additional terms look here. –
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