Amazon’s Profit Suffers From Fast Shipping
The online retail giant posted a third-quarter profit slump of nearly 28 percent — its first such decline since 2017 — sending shares down 8 percent in after-hours trading. That’s because it’s spending big on one-day shipping for Prime members, an investment CEO Jeff Bezos says will pay off. Shipping costs this quarter rose to nearly $10 billion, up 46 percent from last year, while Amazon hired 100,000 new employees during the same period.
What should investors expect? Analysts say they should be prepared for longer-term payoffs instead of the short-term bumps they may have gotten used to.