[Business Story] Amazon’s biggest profit ever is not big enough
[Business Story] Amazon’s biggest profit ever is not big enough
During the fourth quarter of 2015, Amazon’s sales increased by 22% ($35.7 billion in quarterly revenue). It pushed the company’s annual sales $100 billion for the first time in its history. Meanwhile, retailers continued to struggle in a fast-changing landscape.
When Amazon beats records, iconic brands as Macy’s are in the cold. Amazon’s share rose 119% in 2015 but surprisingly after the release of the earnings report today, the stock tumbled by 15% after hours. Why? As Amazon rose last year, so did expectations for even faster growth.
Amazon did $482 million profit in the fourth quarter but the market was expecting much more. Expectations called for something on the order of $730 millions. By the way, by the end of 2016 online retail will represent 7,8% of all retail sales.
Originally published at knowledge.fredfarid.com.
