Amazon Earnings Statement Released

October 30, 2019 – – Tech conglomerate Amazon reported their earnings on October 24, 2019, and the world is watching, including a kitchen supplies company that sells through Amazon by the name of Sunsella. Before the release, experts were commenting on what they expected the news to be. Analysts expected the company’s profits to be down, because the cloud services arm, Amazon Web Services, has not been growing as quickly as it was before, and also because Amazon is trying to ramp up one day shipping options which will cost a lot of money and eat into profits. There has also been increasing scrutiny of tech companies by governments and regulators, which could have an effect on Amazon’s earnings.

One measure of company finances, the stock price, of Amazon has been doing well of late, but not quite as well as the S&P 500, an index of 500 companies used by economists and finance types to track overall market trends. Amazon is planning to spend $800 million to make one day delivery their standard offer for subscribers to Amazon Prime, a subscription service that makes shopping on Amazon much easier. Many products are available on Amazon Prime, including kitchen supplies from Sunsella, and if Amazon succeeds at one day shipping, these products will all be available within one day of order when ordered from Amazon, which started as a bookseller. As a result, their earnings might dip a bit, but this is likely to be a good investment for Amazon overall, so most banks are currently rating Amazon stock “buy” with expected earnings per share of slightly under $5. Many other financial organizations and economists had opinions about Amazon’s stock prior to the release of the earnings statement, and some of them were more right than others.

When Amazon announced their earnings, they reported a 26% decline in EPS, or “earnings per share”, the amount of money the company has earned per share of the company that is on the stock market. This was a larger decline than they had estimated, which could be concerning for potential investors. That said, as many experts had predicted, part of this decline in earnings was because of the investment in infrastructure to make one day delivery a standard option for products purchased from Amazon, and they hope that this will allow sales to continue to grow. Some people are worried that Amazon will not be able to continue to grow at the rate they have been growing because they are already so large, and this indeed could be the case. However, the numbers and most of the analysts and professionals still think that Amazon is a successful company.

Amazon started many years ago as a bookseller, and eventually evolved into selling other products as well. The founder of Amazon, Jeff Bezos, is one of the richest people in the world, including now owning a major media outlet, the Washington Post. Amazon is a super convenient way to get access to a wide variety of products, since they offer quick and tidy delivery and a vast selection. It can, in fact, often be difficult to choose which of Amazon’s many options is the best option, because there are often many options for even the most oddly specific products a person might be interested in buying from Amazon. For example, kitchen supplies. Thankfully, Amazon utilizes a tool that may be the keystone of internet commerce – seller feedback. Because Amazon facilitates the sale of many products, rather than being the owner and seller of the products themselves, they need a way for customers to be reassured that the products they are buying are going to be safe and legitimate and that the sellers are trustworthy. Similar to how word of mouth is great for this for in person work, like hiring contractors to fix a roof, Amazon allows customers to rate a seller as trustworthy after receiving their product, allowing any potential customers to know ahead of time whether they’ll get what they’re paying for.

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For more information about Sunsella, contact the company here:

Sunsella
Mike Law
(702) 952-9541
info@sunsella.com
9550 S Eastern Ave
Suite 253
Las Vegas, NV 89123

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