Amazon.com, Inc. (NASDAQ:AMZN)’s financial statement is full of uncertainty as if the management tries to predict the future of the company by means of astrological movements. However, what’s clear is that Amazon.com, Inc. (NASDAQ:AMZN) fell short of the operating income value for the third quarter last year by a value between $1.08 billion and $.08 billion, according to their expectations. CNBC tried to dwell deeper into the matter and shape a more general picture of how the company’s doing and why investors are bothered by the numbers.
“That’s the problem here, Amazon has clearly said ‘Consumers first, shareholders take a number’. So, it’s fine when your sales are growing 20-plus percent, but the guidance they just put out there for the holiday quarter is 7% to 18% sales growth, so when you’re in investment mode and your sales are slowing down that equation no longer works, ” stated Stacey Widlitz of SW Retail Advisors.
Amazon.com, Inc. (NASDAQ:AMZN)’s stock price drifted 8.34% to a price of $287.06 on the back of this news and the future is predicted to be grim if the statistics will not change. A major culprit for their huge losses is considered to be the Fire Phone, which just gathers dust on the electronic and real shelves as $83 million worth of devices are still in Amazon.com, Inc. (NASDAQ:AMZN)’s inventory. The costs to develop this product were close to 170$ million, so it’s not a big surprise that investors began to lose their patience with the company’s Dao of doing business.
“It’s gone in different places and that’s both been part of the problem for the company but also why its competitors are concerned about Amazon. Down the line, some of these big bets may pay off it’s just it may take some time,” informed Roger Cheng, CNET Executive Editor.
Amazon.com, Inc. (NASDAQ:AMZN) can still get up before the countdown begins, but these earnings hit impressions to a severe knock-down.
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