OK so call me an alarmist. Amazon and eBay have adjusted their sales outlook for the fourth quarter and their numbers aren’t rosy at all.
Amazon.com projected it would earn $6 billion to $7 billion during the fourth quarter, down from the $7.2 billion it had previously forecast. That’s bad news for investors: Last year the fourth quarter accounted for 43% of the Seattle retailer’s annual profit.
Shares plunged 14% in after-hours trading despite Amazon.com reporting a 48% jump in third-quarter profit, buoyed by the free shipping service that prompted customers to buy more. The company has added products and cut prices to lure more shoppers and take market share in the downturn.
Last week EBay Inc. predicted its first-ever quarterly sales decline and cut its annual earnings forecast. The two companies’ forecasts suggest that the deepening financial crisis will hit online retailers just as hard as their brick-and-mortar counterparts. (From LATimes)
It’s sad to know that some people are more concerned about Christmas party budgets, giveaways and end of year bonuses. Time to dig down and deep people.
November 17th, 2008 at 5:46 pm
The two companies’ forecasts suggest that the deepening financial crisis will hit online retailers just as hard as their brick-and-mortar counterparts,thats really happen.