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Amazon Rise or Fall

In: Business and Management

Submitted By KYatta
Words 368
Pages 2
Recent news disclosed a disappointing forecast of plummeting profit loss for the online superstore Amazon. said “stock fell nearly 11% in after-hours trading Thursday. The company reported a $437 million loss” (AMZN,Tech30). As a result of Amazon’s misfortune, some of their investors are getting impatient with their tactics of solely investing in new products and services to increase revenue growth instead of making a substantial profit. In the light of this current situation, Chief Officer Thomas Szkutak stated “the company is focused on using its money wisely so that we get good returns on invested capital” (Szkutak). Despite reports of their twenty percent annual loss, Amazon’s executives still remain confident they will reach their yearly goals.
From a long time customer’s perspective, it was shocking to read about the online giants present financial difficulties. As for now, if wants to remain a multi-billion dollar industry It’s imperative they implement a plan that will draw in an enormous amount of income. The reports despite of the recent 22 percent decline in stock, “Amazon said it expects holiday quarter revenue of $27.3 billion and $30.3 billion, below analyst expectations of $30.9 billion, ” (Anderson).
The expected revenue report couldn’t have come at a better time for amazon executives. Their investors made it publicly clear they must see positive financial changes in order for their continued support of the company. My research revealed that Amazon is gearing up for something big this quarter. They have already hired 80,000 new seasonal employees, expanded their grocery delivery service, and expect to have a total of 65 sorting centers operating before the holidays. With the enormous amount of online shopping options readily available. These changes may be just what the company needs in order to succeed in the future.…...

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