Amazon loses customers, revenue, and misses predictions

Amazon is an American electronic commerce and cloud computing company. They are the largest retailer in the world, but recently Amazon loses customers and revenue. Amazon saw its sales slowdown in the second quarter. Ironically Amazon’s revenue did climb this year in its second quarter, but it wasn’t exactly how the rate analysts had expected. The E-commerce tech powerhouse released, their net sales in the April-June quarter climbed to $113.1 billion, up 27% from $88.9 billion.

Forecasts of around $115 billion in sales had been made by analysts, but it managed to land comfortably within a range of $110 billion – $116 billion for the second quarter in April. Earnings per share had risen to $15.12 per share, up 46.8% from $10.30. It did beat the expected forecasts of $12.22 in earnings per share. Amazon’s revenues grew from the services vendors who pay the company, more than its retail sales.

In April, Amazon moved its annual Prime Day shopping holiday to the second quarter, altering the event’s regular timing of July. Prime Day was eventually scheduled for June 21-22. The event was successful for its third-party sellers, who utilized the company’s marketplace to sell their wares, often fulfilled by the Amazon program that lets companies store goods at Amazon’s warehouses and take advantage of its delivery service and participate in the Prime program. Advertising revenues grew substantially. Amazon Web Services played a strong role by contributing $14.8 billion in revenue and accounting for more than half of Amazon’s operating income.

Amazon Loses Customers, but Why?

Despite having its first-ever June Prime Day, Amazon observed its sales slowdown in the second quarter. The company attributed it to the consumers’ additional mobility. With the decline in COVID-19 cases, shoppers are finally getting out of their houses.

Amazon did plow through past analytic predictions, posting record profits even after telling its investors that it would be spending billions to deal with the effects of COVID-19. Amazon had also dealt with major drawbacks in its logistics chain leading to delivery delays, faced high turnover in warehouses, where some workers organized walkouts in protest of Amazon’s handling of safety.

What is Amazon’s total net worth? 

Amazon is one of the few trillion-dollar companies in the world, joining ranks with Apple, Microsoft, and Alphabet –the parent company of Google– in 2020. Amazon has its stock price currently at over $3,200 per share, brings the market cap to $1.63 trillion. Amazon’s net worth is not as high as its market cap, but still, Amazon has a Net Worth is $314.9 Billion (because we have to factor in liabilities and debt). If you liked this article (or if it helped at all), please leave us a comment below or share it with friends, so that they can read about Amazon too.