Categories Technology

Amazon (NASDAQ: AMZN) stock gains as Black Friday nears

Amazon.com Inc. (NASDAQ: AMZN) stock has been on the upward swing since Monday after deals of Black Friday, which falls on the first day after Thanksgiving. The e-commerce giant has been betting on this retail and spending event for recovering from the third-quarter earnings miss and the stiff competition that remained in the retail industry.

The company has already set its sights on Cyber Monday but prepared itself to the Black Friday weekend by revealing the full list of deals in all categories. This is the start of the blockbuster sales and promotions as the retail industry is gearing up for the holidays.

Image Courtesy: Christian Wiediger on Unsplash

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.

Follow our Google News edition to get the latest stock market, earnings and financial news at your fingertips.

Most Popular

Kraft Heinz reports Q2 earnings: Infographic

The Kraft Heinz Company (NASDAQ: KHC) reported second-quarter 2021 financial results before the regular market hours on Wednesday. The food company reported Q2 revenue of $6.62 billion, down 0.5% year-over-year

GM Earnings: Key quarterly highlights from General Motors Q2 financial results

General Motors Co. (NYSE: GM) reported second quarter 2021 earnings results today. Total revenue rose to $34.2 billion from $16.8 billion in the same period last year. GAAP net income

CVS Health Corp. (CVS) Earnings: 2Q21 Key Numbers

VS Health Corporation (NYSE: CVS) reported second-quarter 2021 earnings results today. Total revenues increased 11.1% to $72.6 billion compared to the same period last year, driven by growth across all

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top