CEO Andy Jassy Examines Non-Profitable Businesses as Shares Plummet
- Amazon CEO launches cost-cutting review
- Examining non-profitable businesses, including Alexa and robotics division
- Shares fell up to 20% last month due to slowdown in sales
- Annual operating-plan review focusing on current economic challenges
Amazon CEO Andy Jassy is conducting a cost-cutting review, examining non-profitable businesses such as Alexa and robotics division. This comes after Amazon’s shares fell by up to 20% last month due to a slowdown in sales. The company confirmed it was undergoing an annual operating-plan review, taking into account the current global economic challenges. Sales for the quarter ended September 30, 2022 were $127.1bn (£110bn), a 15% increase from the prior year but below analysts’ expectations. Operating income fell to $2.5bn (£2.2bn) from $4.9bn (£4.3bn) in Q3 2021. The company predicts sales for the upcoming quarter will be between $140bn (£122bn) and $148bn (£129bn), marking a growth of 2-8% compared to Q4 2021, but below analyst expectations of $155.15bn (£135bn).
Factuality Level: 7
Factuality Justification: The article provides accurate and objective information about Amazon’s cost-review and its examination of certain businesses, as well as the company’s recent financial performance. However, it lacks some details on the specific reasons behind the review and could provide more context on the macroeconomic challenges mentioned.
Noise Level: 4
Noise Justification: The article provides relevant information about Amazon’s cost-review and its focus on unprofitable businesses, as well as the company’s recent financial performance. However, it could benefit from more in-depth analysis of the reasons behind the slowdown and potential long-term implications.
Financial Relevance: Yes
Financial Markets Impacted: Amazon’s shares
Financial Rating Justification: The article discusses Amazon’s cost-review, its examination of unprofitable businesses, and the impact on its share prices due to a slowdown in sales. This directly pertains to financial topics and impacts the company’s stock market performance.
Presence Of Extreme Event: No
Nature Of Extreme Event: Other
Impact Rating Of The Extreme Event: Minor
Extreme Rating Justification: There is no extreme event mentioned in the text. The article discusses Amazon’s cost-review and share price fall due to economic challenges, but it does not qualify as an extreme event.
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