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Amazon delivered a disappointing quarter and outlook on Thursday as the ecommerce giant was swamped by higher costs to run its warehouses and deliver packages to customers.
Shares fell 10% in after-hours trade.
After a long-running surge in sales during the COVID-19 pandemic, Amazon’s outlook has dimmed. The company’s expenses swelled as it offered higher pay to attract workers during a labor shortage, and even then it could not fully staff warehouses.
A fulfillment center in New York City voted to create Amazon’s first U.S. union, a result the retailer is contesting. And higher fuel prices are eating into consumers’ disposable income while making delivery more expensive for Amazon. – Reuters