Market value falls below $1 trillion! Will Amazon's Q4 growth be as low as 2%?

In 2022, Amazon faces higher operating costs due to supply chain crises, labor shortages, and high inflationary pressures. At the same time, the aftereffects of the large-scale expansion led by former CEO Bezos during the epidemic are beginning to emerge.

In order to ease the high sales pressure this year, the new CEO Andy Jassy took action to reduce business costs while also planning to add an autumn membership day.

However, judging from Amazon’s Q3 financial report released a few days ago, these measures seem to be in an awkward situation of being difficult to be effective due to the unprecedented strength of the US dollar.

It is learned that on October 27, local time in the United States, Amazon released its third-quarter financial report for 2022. Amazon's Q3 revenue was US$ 127.1 billion , a year-on-year increase of 15% , slightly lower than the market expectation of US$127.46 billion.

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Benefiting from the Prime Day promotion in July , Amazon's net profit in the third quarter reached US$ 2.872 billion , a year-on-year decrease of 9% . However, given that Amazon suffered consecutive losses of US$3.8 billion and US$2.028 billion in the previous two quarters, this shows that Amazon's business has returned to profitability starting from this quarter.

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According to the report, Amazon said that the challenges faced in this quarter's performance were mainly due to the following factors:

• In the backend [Amazon Logistics Issues], select [Investigate Other Amazon Logistics Issues] and briefly describe your expansion application;
• After receiving the email reply from Amazon, fill in the reason for applying for expansion according to Amazon's requirements and attach relevant descriptions of why the product is of high quality;
• Finally, you will receive an email informing you that your request for increase in replenishment limit has been approved.