While holiday season has been quite merciful to retailers and several other companies, it may not have been lucky for Amazon (NASDAQ:AMZN). The company might hit an all-time low over a 52 week period. If the released sales figures that are even lower than its current 52-week $284 figure, the shares price could fall a further 10%.
While other companies bask in success of the holiday sales, Amazon (NASDAQ:AMZN) has predicted poor figures for the current quarter. This will in turn cause dip in probable revenue gain, while there is a big chance that the company will post loses for this quarter.
The e-commerce giant has quite recently released its latest figures. According to the recent statistics, net sales are being projected from $27.3 billion to $30.3 billion. This translates to growth at 7% to 18%, as opposed to the Q4 2013 figures.
Loses in terms of operating income are expected to fall between $570 million and $430 million, as opposed to $510 million in Q4 2013. A meagre 7% improvement in profit yields in the holiday season is not an ideal situation for a company that has already posted failing figures in its previous quarters. This is not going to reflect good for Amazon (NASDAQ:AMZN)’s shareholders.
Amazon (NASDAQ:AMZN) continues to hold fort when it comes to the e-commerce market. It however, lags behind when it comes to the retail business. The figures generated from each of the two categories translate two very different scenarios and points to the fact that Amazon (NASDAQ:AMZN) hasn’t been able to establish itself in terms of a brick and mortar setup, as opposed to the reputation it enjoys as an e-commerce giant.
To improve the situation, Amazon (NASDAQ:AMZN) has brought in to the market several newer product lines, and they are expected to do a lot of good if they are able to catch consumers’ eye. One of these services that is worth mentioning here is the online streaming video service. The Amazon (NASDAQ:AMZN) holiday strategy seems to have failed and it is quite evident from the posted quarterly loses.
The investors are quite concerned with the ambitious experimentation of the Amazon (NASDAQ:AMZN) founder Jeff Bezos, and it doesn’t drive home a logical explanation. While Amazon (NASDAQ:AMZN) plans to expand its product line, their products fail to impress. The Fire Phone, their first contender in smartphone market has miserably failed to draw any worthy attention to itself, limiting the company to sell it at a very meagre price during the holiday season. In addition to this, their TV has met a similar fate. It may not be the wisest business strategy to bring in products to a market that is already very competitive, with rivals, such as Apple (NASDAQ:AAPL), Google (NASDAQ:GOOGL), Samsung (NASDAQOTC:SSNLF) and several other smartphone companies, as well as many TV brands that have been in this market for a while and have a very loyal customer base.
The current $313 share price seems alarmingly close to the lowest 52-week $284 figure.