Arab Today, arab today investors punish amazon again after hefty losses
Last Updated : GMT 06:58:51
Arab Today, arab today
Arab Today, arab today

Investors punish Amazon again after hefty losses

Arab Today, arab today

Arab Today, arab today Investors punish Amazon again after hefty losses

Amazon
New York - AFP

 After posting widening losses, Amazon took a pounding on Wall Street Friday, raising doubts on whether investors will support chief executive Jeff Bezos' strategy of putting investment ahead of profit.
The shares tumbled 8.3 percent to close the week at $287.06, having slid some 28 percent from highs earlier this year.
Amazon said Thursday its loss in the last quarter widened to $437 million after a series of product launches including new phones, tablets and television programs.
The news from online retail giant, which is known keeping profit margins low as it grabs market share nonetheless stunned many investors and analysts.
"Frustration with Amazon is reaching peak levels," said Deutsche Bank analyst Ross Sandler. "We are struggling to identify a catalyst to break the negative momentum."
The loss in the third quarter was worse than anticipated, and far worse than the $41 million deficit in the same period a year earlier.
The loss came even as net sales increased 20 percent from a year ago to $20.58 billion in the quarter.
"We see further downside risk to the stock," said Barclays analyst Paul Vogel.
Vogel said Amazon's aggressive spending and soft growth outlook "may be too much for everyone but the most patient of investors."
- Facing Alibaba -
Shilpa Rosenberry, analyst at the research firm Daymon Worldwide, said Amazon is facing challenges at it tries to expand globally and goes up against new challengers like China's Ali Baba.
"While they're scaling fast internationally they're very challenged, especially as they're entering emerging markets where competitors like Alibaba have an advantage," Rosenberry said.
The US holiday season will test Amazon because "traditional brick-and-mortar retailers are stepping up," she said, warning that rivals like Target will offer free shipping without minimums.
Amazon this year has been moving aggressively in several areas, not just in traditional retail.
Bezos earlier this year announced the launch of its "Fire" smartphone, and later upgraded its line of Kindle tablet computers and introduced a streaming media player.
The company bolstered its online content with new original programs and ordered a second season of its dark comedy "Transparent," a move that boosts its challenge to video rivals such as Netflix.
The Seattle-based company bolstered its online gaming presence with a $970-million acquisition of the game platform Twitch, and expanded its "Amazon Fresh" grocery delivery service.
While some Amazon products and services have been popular, its smartphone market share has been "effectively zero," according to the Consumer Intelligence Research Partners consultancy.
Amazon took a charge of $170 million for inventory, mainly for unsold phones.
Yet some analysts say the company is on the right track with Amazon Prime, a subscription service which gives customers free shipping and access to music, videos and other online content.
- Being patient? -
"Amazon remains a very aggressive investor," said Mark Mahaney at RBC Capital Markets.
Mahaney added because of Amazon's marketing acumen and "excellent innovation track record" and suggested that its investments will pay off in the long run.
Amazon will reap benefits from the global expansion of its Kindle ecosystem, using tablets for content like books and films.
"We'll be patient," he said in a note to clients.
Tom Szkutak, Amazon's chief financial officer, defender the company's strategy in a call with analysts following the earnings release.
"We certainly have been in several years now of what I would call an investment mode, because of the opportunities that we've had in front of us," he said.
Szkutak offered no indication of a change in strategy, saying only "there's still lots of opportunity in front of us, but we know that we have to be very selective about which opportunities we pursue."

 

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today investors punish amazon again after hefty losses Arab Today, arab today investors punish amazon again after hefty losses

 



Arab Today, arab today

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today investors punish amazon again after hefty losses Arab Today, arab today investors punish amazon again after hefty losses

 



Arab Today, arab today France defies terrorism through tourism

GMT 15:18 2017 Saturday ,20 May

France defies terrorism through tourism
View News in Arabic - Business: أخبار الشركات
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Mozambique's gas boom dream under threat

GMT 16:29 2017 Monday ,08 May

Mozambique's gas boom dream under threat
Arab Today, arab today Prepares to give stargazers an eyeful

GMT 13:38 2017 Monday ,06 March

Prepares to give stargazers an eyeful
Arab Today, arab today Jaguar displays XF Sportbrake line

GMT 14:36 2017 Monday ,08 May

Jaguar displays XF Sportbrake line
Arab Today, arab today BMW sees forecasts in reach

GMT 09:04 2017 Thursday ,04 May

BMW sees forecasts in reach
Arab Today, arab today Climate science: Bad news gets worse

GMT 08:48 2017 Saturday ,06 May

Climate science: Bad news gets worse
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday