Jeff Bezos, Amazon CEO, lost his title as the world’s richest person on Thursday. When the Amazon’s latest earning reports gave the unexpected results.
Forbes reported that Bezos’ fortune is most likely dependent upon the value of Amazon stock, worth $103.7 billion, on Thursday night.
Bezos now lagged by the Microsoft co-founder Bill Gates, whose net worth clocked in at $105.7 billion, per Forbes.
Amazon stock dropped by 8 percent in the after-hours of trading. The stock slide cost Bezos $7 billion in just a few hours as per CNBC. Amazon saw its first profit decline in more than two years.
Analysts attributed it to big investments in shipping.
“The company reported earnings of $4.23 for the third quarter vs. $4.62 expected”, according to analysts Refinitiv.
“Higher expenses/lower margins from faster shipping and Amazon Web Services investments further solidify AMZN’s competitive moat, in our view, and should lead to superior growth with higher margins over time,” SunTrust analyst Youssef Squali stated.
“While a soft 4Q guidance is weighing on shares post close, we find it generally conservative, and continue to view AMZN as one of the most attractive assets in our coverage universe,” Youssef added.
Many other analysts contribute their agreement to the statements.
“We remain Buy rated and we see any post-quarter share weakness as a good entry point against the long term narratives,” UBS analyst Eric Sheridan said.
“Future growth and investments should payoff for patient investors”, As per a analysts at Guggenheim.
″“Over the next 12 months and long-term, we believe Amazon will continue to benefit from strong growth in profitable segments (AWS, advertising, 3P retail, subscription revenue) and expand its leadership moat across industries (retail, with Prime’s move to 1-day shipping, and cloud computing, among others),” analyst Robert Drbul stated.
“We’ll take the trade-off of lighter profits for higher revenue—Amazon’s earned it; We’re buying the pullback,” J.P. Morgan analyst Doug Anmuth said.