What is Amazon's financial situation? (2024)

What is Amazon's financial status?

Amazon.com, Inc. reported earnings results for the third quarter and nine months ended September 30, 2022. For the third quarter, the company reported revenue was USD 127,101 million compared to USD 110,812 million a year ago. Net income was USD 2,872 million compared to USD 3,156 million a year ago.

(Video) AMAZON Financial Report 2020: AMAZON Financial Statements and Ratios Analysis by Paul Borosky, MBA.
(Quality Business Consultant by Paul Borosky, MBA)
Is Amazon in a strong financial position?

Amazon is a leading online retailer and one of the highest-grossing e-commerce aggregators, with $386 billion in net sales and approximately $578 billion in estimated physical/digital online gross merchandise volume, or GMV, in 2021.

(Video) How Amazon Makes Money
(CNBC)
How successful is Amazon financially?

Amazon ranks as one of the world's top companies by market value. As of January 27, 2023, Amazon had a market capitalization of $1 trillion. The company posted net income of $2.9 billion in the third quarter (Q3) of its 2022 fiscal year (FY). The three-month period ended September 30, 2022.

(Video) Amazon (AMZN) Q4 Earnings Analysis
(The Investor Channel)
Is Amazon operating at a loss?

Operating income decreased to $12.2 billion in 2022, compared with $24.9 billion in 2021. North America segment operating loss was $2.8 billion, compared with operating income of $7.3 billion in 2021. International segment operating loss was $7.7 billion, compared with operating loss of $0.9 billion in 2021.

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Is Amazon making profit or loss?

Amazon Retail remains flat, loss fattened 22%

Sale of products from the retail segment grew only 8% to Rs 1,710 crore in FY22 from Rs 1,585 crore in FY21.

(Video) Amazon earnings led by ‘accelerating third-party retail revenue growth,’ analyst says
(Yahoo Finance)
Is Amazon in any debt?

Amazon long term debt for the quarter ending September 30, 2022 was $58.919B, a 17.71% increase year-over-year. Amazon long term debt for 2021 was $48.744B, a 53.21% increase from 2020.
...
Compare AMZN With Other Stocks.
Amazon Annual Long Term Debt (Millions of US $)
2020$31,816
2019$23,414
2018$23,495
2017$24,743
9 more rows

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(Yahoo Finance)
What is Amazon's biggest weakness?

Weaknesses
  • Business model that can be imitated.
  • Seasonality of the business.
  • Weak competitive position of Amazon's Fire Phone.
  • Damage to the brand image due to tax avoidance controversies in USA, UK and Japan.
  • Working conditions for warehouse workers.
Mar 23, 2022

(Video) Jim Cramer explains why he thinks Amazon is in trouble
(CNBC Television)
What financial risks does Amazon face?

The biggest risks of investing in Amazon.com, Inc. (NASDAQ: AMZN) stock are increasing competition, profit potential uncertainty, revenue growth uncertainty, speculative valuation and share price volatility.

(Video) What does a Financial Analyst at Amazon do?
(MyFIntelligence)
How is Amazon doing financially 2022?

Amazon.com Inc. reported fourth-quarter total sales of $149.20 billion, a 9% jump from a year earlier. Ecommerce sales dropped 2% year over year to $64.53 billion in Q4 2022. For the full year of 2022, ecommerce sales fell 0.3%.

(Video) Amazon.com Financial Analysis 2021 – Amazon.com Financial Reports by Paul Borosky, MBA.
(Quality Business Consultant by Paul Borosky, MBA)
Why is Amazon losing so much money?

The company fell out of the trillion-dollar club last month. Much of Amazon's misfortunes are tied to the economy and macro environment. Soaring inflation and rising interest rates have pushed investors away from growth and into companies with high profit margins, consistent cash flow and high dividend yields.

(Video) Interview: Amazon Sr. Financial Analyst (Amazon Web Services)
(Career School)

Why is Amazon not making profit?

Amazon isn't profitable because it's incapable of turning a profit abroad. Instead, the company continues to invest in growth by adding Prime benefits in these countries and pouring billions into emerging markets like India, which Bezos sees as a generational bet.

(Video) Amazon.com Financial Analysis 2021 – Cash and Short-Term Investments Review by Paul Borosky, MBA.
(Quality Business Consultant by Paul Borosky, MBA)
How does Amazon survive without profit?

Amazon is just one example of a company that did that by focusing on growth and revenue rather than profit. Instead of putting all of its energy into making money, it put effort into making its customers happy and expanding its business.

What is Amazon's financial situation? (2024)
Is Amazon running in profit?

Amazon Profitability 1994-2022. Amazon was not profitable in 2022. On about $514 billion in revenue for 2022, Amazon generated a net loss of 2.7 billion.

Is Amazon paying employees to quit?

Typically, Amazon pays its warehouse workers up to $5,000 to quit their jobs after peak seasons like the holidays as a way to pare down its workforce in the slowdown that follows.

How many employees is Amazon firing?

Amazon on Wednesday announced it is planning to lay off more than 18,000 jobs amid a push to cut costs. Amazon is laying off 18,000 employees, the tech giant said Wednesday, representing the single largest number of jobs cut at a technology company since the industry began aggressively downsizing last year.

What is Amazon risk of loss?

RISK OF LOSS

All purchases of physical items from Amazon are made pursuant to a shipment contract. This means that the risk of loss and title for such items pass to you upon our delivery to the carrier.

How long was Amazon unprofitable?

Amazon reports its first unprofitable year since 2014 The biggest culprit was Amazon hefty investment in the electric automaker Rivian, whose value plummeted last year. Amazon also contends with the need to recalibrate after a pandemic-era upsurge.

Is Amazon debt heavy?

Carrying virtually no net debt, Amazon.com has a very light debt load indeed.

What are some major issues in Amazon?

Amazon FBA in 2022: Biggest Challenges and How to Overcome Them
  • Compromised Cash Flow. Amazon has a strict structure around payouts. ...
  • High Degree of Competition. Amazon allows a large number of sellers to sell the same product. ...
  • Packaging Restrictions. ...
  • Strict Inventory Expectations. ...
  • High Amazon Fees. ...
  • Way Forward.

How is Amazon beating its competitors?

In comparison to other websites, Amazon offers a more user-friendly experience to its clients. Major differentiators include improved search and query capabilities, suggestions based on prior purchases, one-click ordering at check-out, numerous user reviews and ratings, and dash buttons for automatic re-buying.

What is Amazon's future strategy?

Strategy: An Eye on the Future

Amazon's business strategy is based on one primary goal: to meet every customer need and want with a superior experience, so Amazon becomes part of every single purchase made.

Who is Amazon's biggest threat?

Rising PPC Costs Are Your Biggest Threat

Rising PPC costs are the biggest existential threat to your Amazon business and by knowing your Total ACoS you can easily figure out the impact on your bottom line.

Is Amazon a good investment for 2022?

Despite these intriguing expansion prospects, Amazon's stock can be had for a bargain price. Following its sharp decline in 2022, its shares are now trading for less than 22 times its cash flow from operations. That's near the bottom of its typical range.

Is Amazon stock high risk?

shows a Risk Score of 7.00. 0 corresponds to a very high risk and 10 corresponds to a very low risk."
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International Peers - Amazon.com Inc.
Company NameAmazon.com Inc.
CtryUSA
Market Cap. last (mUSD)1 072 320
Beta 1-Year1.36
Year-To-Date Price Change (in local currency)25.2%
6 more columns

What price will Amazon be in 5 years?

Amazon stock price stood at $112.91

According to the latest long-term forecast, Amazon price will hit $125 by the end of 2023 and then $150 by the middle of 2024. Amazon will rise to $200 within the year of 2025, $250 in 2026, $300 in 2028 and $400 in 2034.

Is Amazon under or overvalued?

If you value each business segment individually, it's easy to determine that Amazon's stock is undervalued.

Is Amazon profitable in 2022?

In the third quarter of 2022, Amazon's net income amounted to nearly 2.9 billion U.S. dollars, although previous quarters had shown negative values. Online product sales are the biggest revenue segment of the e-tailer, followed by retail third-party seller services.

How long until Amazon was profitable?

Jan. 30, 2002 -- I was wrong. It's interesting how muted the response was to the news last week that Amazon.com — after six years in business and as the poster child for the dot-com boom and bust — finally announced real profits.

Why does Amazon not make a profit?

Amazon intentionally posts low profits because it takes the vast majority of the money it earns and invests it right back into the company so that it will profit all the more in the future.

Is Amazon losing customers 2022?

The number of Amazon customers who said they were “extremely” or “very satisfied” with the company in a recent survey has fallen from 88% over a decade ago to 79% in 2022 (although that is an improvement from 65% in 2020), according to investment firm Evercore EVR +1.7% ISI. Shopper approval declining below rivals.

What is the future outlook for Amazon?

Stock Price Forecast

The 48 analysts offering 12-month price forecasts for Amazon.com Inc have a median target of 134.00, with a high estimate of 171.00 and a low estimate of 80.00. The median estimate represents a +29.62% increase from the last price of 103.38.

What is the future growth of Amazon?

High Growth Earnings: AMZN's earnings are expected to grow significantly over the next 3 years. Revenue vs Market: AMZN's revenue (11.2% per year) is forecast to grow faster than the US market (7% per year). High Growth Revenue: AMZN's revenue (11.2% per year) is forecast to grow slower than 20% per year.

What is Amazon's biggest failure?

What were some of the biggest failures of Amazon? Amazon Fire Phone, Pets.com, Askville, and Amazon Destinations are some of the biggest product failures of Amazon.

Is it a good idea to invest in Amazon right now?

Amazon is built to last, even if times are tough

Even though AWS' operating income margin dropped to 26.3% in the third quarter, down from 30.3% in the prior-year period and 29% in Q2 2021, the segment is still posting strong margins and remains primed for long-term growth.

Will Amazon stock recover 2023?

The company's long-term earnings outlook remains attractive. Considering that, Amazon looks cheap right now, as it trades at less than two times sales. All of this means, whether Amazon rebounds in 2023 or later, investors still are likely to win big over time.

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