‘It’s going to cost us’: Amazon net revenue down nearly 50% as consumers return to traditional stores

Posted:

October 29, 2021 12:21 GMT

When the financial results were announced, Amazon shares fell 4.05% on October 28 to about $3,307.

Amazon shares fell 4% this Thursday, according to data From the MarketWatch portal, after the American company announced the results of the third quarter of 2021 that reveal the largest drop in its net income by about 50%.

notice, diffuse By the company on its website, that Amazon’s net income has fallen to $3.2 billion During the third quarter of the year, compared to $6.3 billion during the same period in 2020.

The company is facing slowing sales growth as society returns to ‘normal’ after severe restrictions from the pandemic and opts to visit physical stores rather than order online. “Consumers are starting to return to Pre-academic spending patternsAmazon Chief Financial Officer Brian Olsavsky said, mentioned above from Bloomberg.

On the other hand, according to the same company, Amazon is currently facing supply chain issues.

Estimated net sales for the fourth quarter of 2021 between 130 billion dollars and 140 billion dollarsWhich would represent a growth of 4% to 12%. Meanwhile, operating income can reach 3 billion dollars compared to $6.9 billion accumulated during 2020.

As Andy Gacy, Amazon CEO, points out, the new quarter will be “expensive” for the company due to “labor shortages, increased wage costs, problems with global supply chains, and increased freight and freight costs.”

“We have always said that when faced with the choice between improving our profits in the short term and what is best for long-term buyers, we will choose the latter,” Gacy said, also noting that the company expects to bear Additional expenditures (about $1 billion) in the last quarter of 2021. “It will be costly for us in the short term, but it is the right priority for buyers and partners,” he added.

After this news, Amazon shares fell by 4.05% on October 28 to stand at about $3,307. The results reflect Gacy’s first stint as CEO of Amazon after Jeff Bezos We will leave Position in July, after 27 years.