Amazon sees profits fall
by Brian Turner
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Amazon caused investor scorn when it reported it’s Q4 earnings - and revealed that operating profits had only increased 1% over Christmas.
Q4 Net profits actually fell on last year, from £190 million to £110 million.
Wall Street responded by dropping value of Amazon stock by 10%.
However, don’t be fooled into thinking that the ecommerce giant was struggling to sell in the biggest retail period of the year.
CEO Jeff Bezos had already informed Wall Street that he was more interested in cutting profits to gain customer loyalty. A free delivery scheme for US customers was especially blamed for loss of profits.
So while Amazon expect to make losses in the short-term, they have their eye on a much bigger picture.
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