Amazon revenue reportedly rises but it just might be that holiday months might not bring in so much profit if any at all. The company held its Prime Day event back in July, and now it’s not so sure that it can keep you continues shopping into the holidays.
Amazon Revenue Reportedly Rises
The sales of amazon over the summer sprung back, the company on Thursday reported. This is after the company reportedly struggled with flagging growth and lower profits in the previous year. But the profits of the company from online shopping however faltered, and the income that excludes its cloud services business fell in Amazon’s international business segments. The company also has predicted quite a rough holiday season with a potentially zero profit.
The net sales of this summer rose 15% to $127.1 billion in the third quarter, just missing the $127.46 billion average analyst estimate from a survey made by Refinitiv. The company posted a profit of 28 cents per share, and in the process beat the expectation of Wall Street for 22 cents per share but still however not match the company’s profits in the same quarter the previous year.
Amazon’s Balance Sheet Was Affected By Its Stake in Rivian
Amazon’s balance sheet however was affected by its stake in electric-vehicle maker Rivian, which added $1.1 billion to the profits of the company. Operating income on the other hand, which measures profit without having to include Amazon’s investment in Rivian, dropped to $2.5 billion from $4.9 billion in the summer months of the year 2021.
Financial Analysts Predicted Amazon to Grow Sales
Financial analysts predicted the decision by Amazon to hold Prime Day in July would help the company grow sales when compared to the same quarter last year. In the year 2021, Amazon held Prime Day in June instead. Amazon has strongly relied on its discount bonanza to boost sales, also holding a second markdown event in September of this year.
The online shopping platform and company has weathered lower spending by shoppers at a period when its logistics operation and services became even more expensive to operate. Amazon built its air hub capacity and warehousing to help respond to early-pandemic levels of demand but was however stuck with operating this type of infrastructure when sales fell.