Amazon May End Up Losing Stock Value Following Takeover of New CEO
The revenue report for Amazon for the last quarter of the fiscal year has turned out to be a sheer disappointment for the eCommerce giant. Amazon reportedly shared the revenue report for the period starting from April 1st all the way until the end of June 30th.
According to the Wall Street, the revenue generation report revealed by Amazon is just a disappointment. This was reportedly the last quarter for Amazon where Jeff Bezos was the CEO of the company. Jeff Bezos had reportedly announced that he was going to step down from the post of the CEO of Amazon.
The revenue generation reported for the last quarter of the recent fiscal year was reported by Amazon on Wednesday, July 28, 2021. In the report, Amazon revealed that it managed to generate a revenue of $113.1 billion for that particular quarter.
As compared to the last year’s revenue for the same quarter, Amazon managed to generate 27% more revenue. However, the analysts at Wall Street had predicted that the company would be able to generate $115.2 billion in revenue. This means that the company fell short by $2.1 billion in hitting its predicted target for the particular quarter.
The firm has also reported that compared to the first quarter of 2021, its sales for the second quarter of 2021 (4th quarter for the fiscal year) have experienced a drop.
In the third quarter of the fiscal year, the company had reported that it had generated 40% more sales compared same quarter in 2020. However, the last quarter of the fiscal year has started at a lower end.
Even for the upcoming quarters, the analysts at Amazon and Wall Street have predicted lower sales figures. For the running year, the analysts have predicted that the net sales for the company would only experience an increase between 10% and 16%, compared to the last year.
In the year 2020, the firm had reported that its sales had increased by 37% as compared to the year 2019. This was mainly because of the lockdowns and curfews that rendered millions of people inside their houses. Being inside their houses, they had no choice but to order every through online channels. This is what eventually helped Amazon observe higher gains in the year 2020.
Even when Amazon stepped into the year 2021, the lockdown situation was ongoing. However, governments from all over the world had started circulating the vaccinations for the COVID-19. This resulted in lockdowns being lifted from most of the countries around the world.
As a result, people have started visiting shops and supermarkets to continue shopping as normal, which has dealt a huge blow to the sales of Amazon. Furthermore, the CEO of Amazon (Jeff Bezos) recently stepped down, who had been running the company since the beginning.
For Amazon, Jeff Bezos has been the running force behind every project and deal, which is why leaving Amazon would have drastic results on the company’s stock prices.
In the last 24 hours, the share prices for Amazon have experienced a 0.84% drop, bringing the share price for the company down to $3,599.92 per share.