Amazon'S Profit In The Three Quarter Was The Lowest In The Past Year.

Amazon.comInc.

The profits recorded in the three quarter were the lowest in the past year, and the largest in the world.

The group's sales forecast for the four seasons holiday season has also been worse than market expectations. The two increase in logistics infrastructure and film production is expected to continue to oppress the four quarter profits, and this will hurt investor confidence.

On Thursday, 27, after the three quarter results were released on Thursday, Amazon.comInc. fell 9% to 5.66% to $772.

The Group expects sales in the current holiday season to be between $420-455 and most of the range.

The expected $44 billion 600 million; operating profit is expected to be 0-12.5 billion, far less than the FactSet composite period of $1 billion 620 million, compared to 1 billion 100 million last year.

Although the potential sales growth of 17%-27% during the holiday season was slower than the 28.7% in the three quarter, it is already better than the market's expectations for the overall electricity market in the US.

According to the prediction by eMarketer, an electronic market research firm, online consumption in the US will increase by 17.2% over the same period last year in 11 and December. The increase will be six times the total retail consumption. In addition, the proportion of online consumption will reach 10% of the total consumption for the first time.

In the fight against electricity providers, Amazon.comInc. Amazon is expected to become the biggest winner.

Amazon.comInc. Brian Olsavsky, chief financial officer of Amazon, revealed that the group's increased investment spending in the second half of the year was mainly used for the construction of new warehouses and distribution centers. Since July, 23 new warehouses have been opened in the world, and the number of employees has risen by 28%, and the content of original films and videos is also increasing.

"We know the cost is high, but customers like it," BrianOlsavsky told analysts.

ConsumerIntelligence Research Partners data show that as of September 30th, the number of members of Amazon Prime reached 65 million, an increase of 38% over the same period last year, which proved that the group's strategy of increasing the speed of express service and more high-quality cultural content for members with an annual fee of $99 was deeply popular.

At the same time, profitability was also maintained. In the three quarter, the Group recorded a profit of 575 million US dollars, up 41.6% from 406 million a year earlier, higher than 29% of operating expenses, and operating profit increased from 1.60% in the same period last year to 1.76%, but far below 4.2% in the two quarter.

Net sales rose to $32 billion 714 million from $25 billion 358 million in the same period last year, just in line with market expectations.

Net profit surged 253.2% to 279 million dollars, making profits for the six consecutive quarter, but the EPS0.52 dollar was 33% lower than the 0.78 dollars expected by the market.

Axiom Capital Management analyst Vic Anthony pointed out that the market's expectations were high, but the risk of competition has always been there. Amazon's founder, chairman and CEO JeffBezos's huge long-term strategy also needs huge investment.

The fastest growing and highest profit AWS cloud computing sector achieved a 55% growth in the three quarter, with sales of $3 billion 232 million.

Sales in the North American market and the international market increased by 25.8% and 28.3% to 18 billion 874 million US dollars and 10 billion 609 million US dollars respectively.

It is worth mentioning that the operating losses in the international market doubled from US $208 million in the same period last year to US $541 million. BrianOlsavsky explained that this is because the increase in investment in business expansion will continue to the four quarter.

The stock has risen by 18.76% since 2016, and its market value is more than $380 billion.