Amazon reported for the third quarter of 2021 worse than analysts' expectations and made a weak forecast for the next, holiday quarter. After the report, the company's shares fell by 4%, to 3309 $. Here are the main results: revenue increased by 15%, up to $110.8 billion; operating profit fell by 22%, up to 4.9 billion; net profit fell by 50%, up to 3.2 billion. According to Amazon, the company is experiencing problems due to disruptions in the supply chain, and consumers began to return to physical stores. All this negatively affects the margins and profits of the business.. So, Amazon's earnings per share in the third quarter were 6,12 $. Analysts were waiting 8,92 $. Sales also fell below expectations: 110,8 against 111.6 billion. 'It's going to cost us dearly' Amazon will further increase its costs in the fourth quarter due to labor shortages, high personnel and shipping costs. “It will cost us dearly in the short term., but our partners and customers are more important to us", - said the head of the company Andy Yassy. The company recently announced the hiring of 150,000 temporary employees to work during the holidays.. To attract and retain employees, Amazon gives $3,000 initial bonus, and pays for college. Other large retailers like Walmart and Target offer similar bonuses in a highly competitive job market.. All costs included, as calculated in Amazon, operating income in the fourth quarter will be between 0 up to 3 billion dollars. For comparison: a year ago, operating profit for the quarter was 7 billion. According to company forecasts, revenue will grow by only 4-12%, up to 130-140 billion. Analysts expected more - $ 142 billion. AWS спасает от убытка После публикации результатов за последний квартал Amazon можно смело называть не ретейлером, and a service company. Sales …
Amazon's net profit fell by 50% due to rising costs Read more