Also, the company’s stock is likely to rise sharply into the beginning of 2020 as investors predict the holiday season sales to be positive for Amazon. Traders believe that next year will turn out to return to growth and less spending as Amazon has been investing in its business during this year.
However, concerns continued to dominate the retail industry as the weak performance was achieved by the retailers during the third quarter. The industry was pressurized by the weak sales, disappointing earnings and guidance cut by Kohl’s (NYSE: KSS), Home Depot (NYSE: HD), and Macy’s (NYSE: M). The market analysts view this as not a good sign for the retail industry.
For the third quarter, Amazon reported a 28% dip in earnings due to higher costs and expenses. However, the top line increased by 24% year-over-year as all the three business segments witnessed double-digit sales growth. The company has invested heavily in the 25th holiday season.
For Amazon, this holiday season could turn positive in the growth rate expansion and increasing e-commerce market share. However, the bottom line could be impacted by the investments in the price discounts as shipping and pricing investments could increase. The company already predicted a weak operating profit for the fourth quarter. Let’s wait and hope Amazon stock takes a big leap in the holiday season.