Amazon has already presented results and it does so with surprise, seriously breaches its profit estimates. Compared to the $ 8.92 per share expected by the market, the company founded by Jeff Bezos has only achieved 6.12%.
Regarding revenue, they have achieved $ 110.8 billion compared to the expected 110.600. A disappointment that has already resulted in a sharp fall in the stock market of more than 5% in the afterhours market.
The main reason why Amazon has taken this disaster in the benefits is the supply crisis that afflicts the world. With freight costs skyrocketing, their profitability has dropped significantly. The market already anticipated that this would negatively affect the company and therefore they offered conservative forecasts, but the reality has been even worse.
The worst thing about this situation is that it completely changes the outlook for the fourth quarter and the end of the year. Amazon itself estimates that it will achieve sales of between 130,000 million and 140,000 million, a figure that lowers the expectations that existed before the presentation of results.
The CEO himself, Andy Jassy, has acknowledged to the press that “we expect additional costs of several billion dollars for the fourth quarter.” A situation that comes in the middle of the Christmas season and with key dates such as Black Friday.
Amazon has announced that it plans to bring its first brick-and-mortar stores to life. A project that has been sounding for a while now and that finally comes to fruition. This is a key turn for the firm, which will compete with giants like Walmart.