Global site navigation

Local editions

Amazon quarterly profit slips as shoppers seek bargains
Business and Economy

Amazon quarterly profit slips as shoppers seek bargains

by  AFP 2 min read
Amazon said its net income slipped even though sales rose in the recently-ended quarter, signalling shoppers were hunting bargains that result in less profit for the e-commerce colossus
Amazon said its net income slipped even though sales rose in the recently-ended quarter, signalling shoppers were hunting bargains that result in less profit for the e-commerce colossus. Photo: Kazuhiro NOGI / AFP
Source: AFP

PAY ATTENTION: Click “See First” under the “Following” tab to see Legit.ng News on your Facebook News Feed!

Amazon on Thursday said that its profit in the third quarter slipped more than 9 percent to $2.9 billion, despite an uptick in sales helped by Prime day bargains.

Sales at the e-commerce colossus increased 15 percent to $127.1 billion in the third quarter, compared with $110.8 billion in the same period a year earlier.

Customer response to big Amazon sales events in the past four months has been "quite positive" and "it's clear that particularly during these uncertain economic times, customers appreciate Amazon's continued focus on value and convenience," said Amazon chief executive Andy Jassy.

Amazon shares plunged 20 percent to $88.80 in after-market trades that followed release of the earnings figures.

US tech giants that long seemed impervious to broad economic ills have seen their armor crack this year, with slowing growth and revenue eroding the faith of investors and their share prices.

Read also

US tech titans buffeted by economic headwinds and TikTok

While it has a lucrative AWS cloud computing unit and its Prime video offering, Amazon is a retailer at heart, noted independent tech analyst Rob Enderle of Enderle Group.

PAY ATTENTION: Subscribe to Digital Talk newsletter to receive must-know business stories and succeed BIG!

"When people are having a hard time making ends meet, retail tends to take a hit," Enderle said.

And while founder and former chief executive Jeff Bezos was savvy about retail, "he went off to play with rockets" at his Blue Origin enterprise leaving Amazon in the hands of Jassy, known for his cloud computing prowess, the analyst added.

"Amazon is not a cloud company, it is a retail company, and a cloud computing guy is in charge," Enderle contended.

Meta and Google parent Alphabet both saw share prices tank after disappointing quarterly earnings, as global economic woes along with competition undermined the digital ad revenue powering their money-making engines.

Even business tech stalwart Microsoft saw share prices drop after it released earnings figures showing economic conditions were also tightening budgets when it comes to customers of its cloud, software and services offerings.

Source: AFP

Authors:
AFP avatar

AFP AFP text, photo, graphic, audio or video material shall not be published, broadcast, rewritten for broadcast or publication or redistributed directly or indirectly in any medium. AFP news material may not be stored in whole or in part in a computer or otherwise except for personal and non-commercial use. AFP will not be held liable for any delays, inaccuracies, errors or omissions in any AFP news material or in transmission or delivery of all or any part thereof or for any damages whatsoever. As a newswire service, AFP does not obtain releases from subjects, individuals, groups or entities contained in its photographs, videos, graphics or quoted in its texts. Further, no clearance is obtained from the owners of any trademarks or copyrighted materials whose marks and materials are included in AFP material. Therefore you will be solely responsible for obtaining any and all necessary releases from whatever individuals and/or entities necessary for any uses of AFP material.

Hot: