Riding on its Cloud business, retail giant Amazon.com saw its net sales increasing 29 per cent to $56.6 billion in the third quarter this year, compared with $43.7 billion in third quarter of 2017. Sales will be from US$66.5 billion to US$72.5 billion in the current period, falling short of analysts' average estimate of US$73.8 billion. The upcoming season is expected to benefit from a strong U.S. economy and low unemployment, with the National Retail Federation predicting consumer spending during the holidays rising 4 percent.
As of this writing, Amazon shares are rising almost 7% to $1,783.
"Amazon Business is adding customers rapidly, including large educational institutions, local governments, and more than half of the Fortune 100", Bezos said.
There may be further wrinkles this holiday.
"Make no mistake, Amazon remains a behemoth in the online market - nor do we believe it is under any serious threat", Saunders said.
Amazon Falls After Missing Sales Forecast (NASDAQ:AMZN)
Google has been fined $7.7 billion for antitrust violations in Europe over the last two years, and heightened attention on privacy, security, competition and the rise of artificial intelligence tools has led investors to fret about potentially costly regulatory scrutiny in the United States and elsewhere.
The moves underscore the increasingly competitive landscape as retailers battle it out for your business.
Additionally, Amazon earlier this month said it will boost its minimum wage to $15 an hour, with the change taking effect next Thursday.
It will cost Amazon an extra $333 million to fund its higher salaries during the fourth quarter, according to Cowen, a financial research company.
Google's parent company Alphabet said its third-quarter net profit rose 36 percent to $9.2 billion (roughly Rs. 67,000 crores), fueled by gains in digital advertising delivered online and on smartphones. Amazon, however, did manage to narrow losses from its global business. It was the second consecutive quarter that sales fell short of estimates and the first time for the back-to-back revenue miss in nearly four years. Amazon appeals to advertisers because individuals generally are using the site to shop, unlike users browsing Alphabet Inc's GOOGL.O Google, the ads sales leader, to find general information or rival Facebook Inc FB.O to see updates from their friends.