Here's Why I'll Be Watching Amazon Next Week
Amazon (NASDAQ: AMZN) is scheduled to report fiscal 2022 second-quarter earnings after the markets close on Thursday, July 28. The e-commerce giant is grappling with evolving consumer behavior as the economic reopening gains momentum worldwide.
The company could barely keep up with customer demand at the pandemic's onset, so it invested aggressively in expanding its shipping and fulfillment capacity. Then, when the additions were up and running, customer orders started to cool off. Now Amazon has more capacity than it needs or wants, costing the company billions quarterly. That's partly why I'll be watching closely when it releases second-quarter figures on July 28.
In its most recently reported quarter, which ended on March 31, Amazon's online sales decreased by 3% compared to the same period the year before. That was partly due to a difficult comparison with Q1 2021, when sales jumped 41% year over year. Recall that this time last year, consumers were more concerned about leaving their homes to shop at brick-and-mortar stores. Vaccinations against COVID-19 accelerated throughout 2021 into 2022, giving folks more confidence in public places.
Source Fool.com
