Amazon (NASDAQ:AMZN) experiencing a downturn


It has been rumored that Amazon (NASDAQ:AMZN) has lost more money than what Wall Street predicted it to lose. The famous retailer experienced a decline in its stock by 10% during pre-market trading which eliminated around $15 billion of Amazon’s (NASDAQ:AMZN) market value. Investors have two queries regarding what has happened to the once successful retail company. The first is why does Jeff Bezos operate the company the way he does? The second is if the impact of the company is an opportunity for investors or not?

The report that Wall Street predicted didn’t show the position of the company properly. Amazon (NASDAQ:AMZN) lost around 21 cents per share which is higher than what the analysts expected. Even though the company had an increase of revenue amounting to $20.6 billion, it was way less than the $280 million which Wall Street expected. Bezos isn’t taking the matter too seriously however. He reported in one of his statements that the company is doing more to focus on giving customers so that they have a better experience in the holiday season to come.

The company did have positive reviews and new products which the New York Times stated as the company’s new tablet line having encouraging reviews. The company also increased the grocery delivery services it has to Brooklyn. However, the company had a rough patch with some bad investments on its Fire phone. The product had the lowest rating with huge costs attached to it.

On the other hand, the company is investing heavily on its music and video content. It currently spent $2 billion this year but aims to increase it to $2.5 billion in the next as stated by Wedbush Securities, Michael Porter. But Bezos is a high tech entrepreneur who worked hard on taking the company public and has been working on it for many years. He is among the very few leading CEOs of the century so you should expect more things to come.

With Wall Street running a huge business, sometimes its wants are too high to achieve. The company tries its best to remain at the top but Bezos needs to understand that investors consider Wall Street’s words sacred thus affecting stock price greatly. Bezos isn’t doing too well in the market right now with investors unhappy and employees demotivated regarding his position. However, he is doing what he thinks is best to gain market share by offering customers low prices with diverse products as well as services and maintaining efficient delivery as well as a better customer service.

He is investing more capital into the business in order to get the company to gain more profits in turn. Sometimes this strategy of his works, whereas at other times not so much. He does his best however to keep investors happy but when his plans fail, he turns his back on them and tries another route. Amazon (NASDAQ:AMZN) has a good chance of getting back up on its feet being one of the biggest retailers that history has ever seen but maybe it’s time to take a step back and look at the company through a bigger perspective to see what actually went wrong.