Keep an eye out for the “latest financial results” of Amazon, while Wall Street waits to find out if the online retailer can maintain the heightened demand from the shoppers as seen amid the COVID-19 pandemic.
Three months ago, Amazon had revealed its biggest historic profit, as the world went under lockdown leaving people to conduct their purchases through the web-based marketing platforms. Even though Amazon seemed to have benefitted from the situation, it has had its share of challenges. For example, for some time, Amazon had to restrict its “warehousing services to essential goods”, whereby refashioning its operations as per “COVID-19 precautions”.
Over “19,000” Amazon employees fell victim of COVID-19 while some “demanded site closure” as a result, there was a delay in delivery than the usual delivery time frame. While, Reuters added:
“Some analysts, including Colin Sebastian of Baird Equity Research, want to know if Amazon can manage such challenges while demand climbs with fourth-quarter holiday shopping. The company typically addresses such questions during an analyst call after its financial report”.
And Sebastian questioned:
“Do they have the logistics and delivery capacity to handle order volumes?”
Michael Pachter from Wedbush Securities recounted about recent constraints seen in the warehouse for “certain larger items”. In his words:
“I think you’re going to have a disastrous fourth quarter in terms of demand overwhelming them once again”.
In 2013, Amazon’s delay in delivery had left some “without gift on Christmas Day” and this time Amazon worked hard to avoid similar situation. As a result, company is handling “more deliveries in house” while shifting its Prime Day marketing event to let “shoppers place holiday orders early”. And Pachter added:
“They wanted us to start thinking ‘holiday’ now, before the crazy rush that begins Black Friday.”
And the extra shopping weeks thus added could throw up additional sales while offsetting depressed holiday spending budget with “higher-income households”. According to Reuters report:
“Analysts on average expect revenue of $92.7 billion for the just-ended third quarter, according to IBES data from Refinitiv”.
References:
reuters.com
Three months ago, Amazon had revealed its biggest historic profit, as the world went under lockdown leaving people to conduct their purchases through the web-based marketing platforms. Even though Amazon seemed to have benefitted from the situation, it has had its share of challenges. For example, for some time, Amazon had to restrict its “warehousing services to essential goods”, whereby refashioning its operations as per “COVID-19 precautions”.
Over “19,000” Amazon employees fell victim of COVID-19 while some “demanded site closure” as a result, there was a delay in delivery than the usual delivery time frame. While, Reuters added:
“Some analysts, including Colin Sebastian of Baird Equity Research, want to know if Amazon can manage such challenges while demand climbs with fourth-quarter holiday shopping. The company typically addresses such questions during an analyst call after its financial report”.
And Sebastian questioned:
“Do they have the logistics and delivery capacity to handle order volumes?”
Michael Pachter from Wedbush Securities recounted about recent constraints seen in the warehouse for “certain larger items”. In his words:
“I think you’re going to have a disastrous fourth quarter in terms of demand overwhelming them once again”.
In 2013, Amazon’s delay in delivery had left some “without gift on Christmas Day” and this time Amazon worked hard to avoid similar situation. As a result, company is handling “more deliveries in house” while shifting its Prime Day marketing event to let “shoppers place holiday orders early”. And Pachter added:
“They wanted us to start thinking ‘holiday’ now, before the crazy rush that begins Black Friday.”
And the extra shopping weeks thus added could throw up additional sales while offsetting depressed holiday spending budget with “higher-income households”. According to Reuters report:
“Analysts on average expect revenue of $92.7 billion for the just-ended third quarter, according to IBES data from Refinitiv”.
References:
reuters.com
