Is Amazon profitable through the international losses?
Creative: Geral Jan Omelio, Amazon Remains Profitable
The Motley Fool says Amazon's $5.5 billion loss in the international segment in the first three quarters of 2022 is prompting them to avoid selling outside North America.
It's still important to look at how Jeff Bezos sees international segments despite these losses. So far, he's been able to manage Amazon for long-term growth, emphasizing short-term earnings.
This culture shows in the statement of Olsavsky, Amazon's CFO. He said that Amazon has always been for generational investment. Examples are adding more Prime perks in countries outside the United States and pouring billions of dollars into new markets such as India.
Still a red flag
The long-term vision doesn't erase how they lost more than $5 billion this year and how their total revenue growth has slowed to single digits. Its e-commerce businesses have also suffered losses in both the North American and International segments.
Amazon is slowing down on these investments. These results made Amazon stop hiring across their divisions. Experiments with Scout, a delivery robot, and Amazon care, a healthcare project were also halted.
Potential green flags? This slash on the billions in expenditure is good news for investors as the stock could skyrocket. It's a wise move to buy the stock now before the effects of these actions hit Amazon's bottom line.
HOT TOPIC
Americans should get ready for a looming recession
Creative: Geral Jan Omelio, Ready For Recession
Jeff Bezos advises businesses and consumers to save money to prepare for a severe downturn, as Markets Insider reports. He cautioned that a US recession is approaching.
"Things are slowing down. You're seeing layoffs in many, many sectors of the economy. The probabilities say if we're not in a recession right now, we're likely to be in one very soon."
He didn't say how long he predicts the recession will be. But he warned to prepare for a possible financial collapse.
Preparing for the recession: he advised people not to make any big purchases (such as buying a car or a house) and for small-business owners not to invest in any new equipment. "Take some risk off the table," he told CNN. "Just a little bit of risk reduction could make the difference."
Amazon has already decreased their expenses by not hiring new employees and freezing some projects.
The US central bank is trying to cool the economy by raising interest rates (from nearly 0 in March to 3.75%-4% today). These rates could also peak above 5% for the first time since 2017. However, this will alleviate the upward pressure on prices.
This is not certain as of today. But prices are now below pre-COVID levels.
a good time to buy Amazon stocks, even if the Prime business is losing money. At their current growth rate, theyâre still considered very profitable.
Despite Amazonâs low Q3, Yahoo! Finance reports that Amazon is still showing growth, particularly in its Prime, AWS (cloud services), and Advertising segments.
ECOMMERCE
Amazon Business remains as the top B2B ecommerce marketplace
Creative: Geral Jan Omelio, Ecommerce Marketplace
Amazon Business remains the top B2B ecommerce marketplace across various regions. ResearchAndMarkets.com released the Global B2B E-Commerce Marketplaces 2022 report, as cited in BusinessWire's article.
Takeaways:
Amazon.com expanded its capabilities to the B2B market by launching its subsidiaryâ â , Amazon Businessâ , in 2015. This initiative focuses on the B2B market's needs.
They reached billion of euros in revenue in just a year. That's why Amazon Business became the most preferred marketplace for B2B buyers and sellers globally. It's also the most utilized digital marketplace among small and medium-sized businesses, followed by eBay, Walmart, and Alibaba.
Although they're already a top digital B2B marketplace in several countries, they've yet to establish a stronger presence in Asia-Pacific.
Alibaba, DHGate.com, and TradeIndia are currently dominating Asia-Pacific; meanwhile, several startups within the B2B ecommerce market in Latin America, the Middle East, and North Africa are continuously growing.
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