Internet giant Amazon hoping to make up lost ground in its fourth-quarter results after Apple’s blockbuster figures
- Internet giant will be hoping to make up lost ground in its fourth-quarter results
Amazon disappointed investors in its last set of quarterly results when sales and profits came in lower than expected.
As High Street shops opened their doors again, the boom in demand sparked by the pandemic began to slow.
With this in mind, the internet giant will be hoping to make up lost ground in its fourth-quarter results on Thursday, although profits could still be held back by its massive investments in infrastructure as it tries to accommodate the surge in orders.
There will also be interest in how hard the company has been hit by supply chain disruption and how this has affected its bottom line.
Forecasts are for sales of £103billion for the quarter, up 10 per cent year-on-year and an all-time high for the company.
Profits, however, are expected to drop sharply to around £1.9billion from £5.8billion in the fourth quarter of 2020.
Also on the agenda will be Amazon’s cloud computing business, which is fighting for market share with Microsoft’s Azure division.
Guidance for 2022 will be critical as life returns to normal following the pandemic and customers are once again not reliant on online ordering for all their needs.
Investors have been steadily shifting away from firms whose offerings were suited to helping businesses and consumers get through the early stages of the pandemic and lockdowns and towards those more likely to benefit from the reopening of High Street shops and workers returning to offices.
With financial markets in febrile mood, it will be a big test for Amazon chief Andy Jassy, who succeeded founder Jeff Bezos last year.