While Amazon continues to rake in billions each quarter, the company also continues to miss analyst expectations, as shown by Thursday’s Q3 financial earnings report.
Amazon reported more than $110 billion in revenue, up 15% from the same period last year. However, that falls just short of analyst estimates of nearly $112 billion. CFO Brian Osofsky says that while Amazon’s operations are normally well-staffed and optimized, “labor shortages and supply chain disruptions upset this balance and resulted in additional costs to ensure that we continue to maintain our service levels to customers.”
Additionally, Amazon CEO Andy Jassy expects this to continue into Q4 with “several billion dollars of additional costs” incurred from labor shortages, increased wage costs, and higher costs of shipping and freight. However, he notes that Amazon is doing what it can to minimize the impact on customers. “It’ll be expensive for us in the short term, but it’s the right prioritization for our customers and partners,” he says in a press statement.
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