Friday, February 03, 2017

Hmmm...

Retail sales weren't great over the holidays and plenty of people assumed that was because Amazon was eating everyone's lunch. That may be true, but it doesn't necessarily mean Amazon is doing that well, either:
The online retail technology company reported fourth-quarter earnings that beat analysts' expectations on Thursday, but revenue that fell short of estimates. It also gave future guidance that was below the average estimate.
Amazon has had to spend a lot of money on infrastructure and that's going to have an effect on the bottom line. The cost of sales has to be enormous. It's easy to envision Amazon as a juggernaut, but even juggernauts can encounter resistance.

2 comments:

3john2 said...

Amazon has reported it is going to double it's full-time workforce (more than 1,000 jobs) this year at it's Shakopee distribution center.

Gino said...

my guess is that fewer people have $$ to spend this year. all the cash is rising to the top. Amazon orders were lower than expected for us too. (my site is a the supplier of mailing cartons to amazon on the west coast.)