–
Amazon reported disappointing earnings yesterday, missing both revenue and profit estimates. The company’s revenue growth dropped slightly to 20% as the e-commerce giant posted net sales of $20.58 billion. What’s more worrying though is the fact that Amazon’s net loss widened to $437 million as investments, stock-based compensation and lackluster sales of the Fire Phone weighed on the bottom line.
After a radical price cut on the Fire Phone in September had fuelled rumours about slow sales of Amazon’s first smartphone, the company all but admitted defeat yesterday. Not only did Amazon take a $170 million write-off related to the phone’s weak performance, CFO Tom Szkutak also admitted that his company ended the quarter sitting on $83 million worth of unsold Fire Phones.
Amazon’s stock price dropped 10% in after hours trading, indicating that some of the company’s shareholders are starting to lose their patience. Thus far shareholders had been remarkably trustful of Jeff Bezos’ long-term growth strategy, helping Amazon’s stock price to triple over the past 5 years despite the absence of any substantial profits.
Will you offer us a hand? Every gift, regardless of size, fuels our future.
Your critical contribution enables us to maintain our independence from shareholders or wealthy owners, allowing us to keep up reporting without bias. It means we can continue to make Jewish Business News available to everyone.
You can support us for as little as $1 via PayPal at [email protected].
Thank you.
You will find more statistics at Statista
