Whereas Amazon had a over the previous yr due to lockdown and the ensuing rise of on-line procuring, the corporate’s recent earnings report reveals that it is likely to be slowing. Internet gross sales elevated 15 % to $110.8 billion within the third quarter, which is a step down from the earlier quarter’s 27 % development charge.
On the identical time, Amazon additionally warns that world provide chain points, labor shortages and elevated delivery prices might incur “a number of billion {dollars} of extra prices” within the subsequent quarter. Amazon shares dropped 3.8 % in prolonged buying and selling because of this.
Amazon CEO Andy Jassy stated that the corporate wished to attenuate the affect of those points on the shoppers and promoting companions this vacation season. “It’ll be costly for us within the quick time period, however it’s the best prioritization for our clients and companions,” he stated in a press launch. This additionally marks Jassy’s first quarter as Amazon’s CEO since Jeff Bezos stepped down earlier this yr.
After all, Amazon continues to be making some huge cash; it’s the fourth consecutive quarter it’s earned over $100 billion. Even when on-line gross sales have dipped, Amazon Internet Providers continues to be an enormous cash maker for the corporate, with a 39 % income enhance to $16.1 billion.
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