Notice: Trying to access array offset on value of type null in /home/wallstre/public_html/wp-content/plugins/really-simple-facebook-twitter-share-buttons/really-simple-facebook-twitter-share-buttons.php on line 318
Amazon.com Inc is facing a tough phase in the recent times amid disappointing quarterly results for more than a year now. The patience of its investors is also on test and the threat of break down is looming large.
The tech giant had always conveyed a clear message to its investors and i.e. trust in Jeff Bezos, founder and CEO of Amazon.
The first half of 2014 was unexpectedly busy for Amazon. The online retailer was unusually engaged in spending on developing everything ranging from mobile phones and grocery deliveries to Hollywood-style production. But that failed to impress the investors as they want Amazon to limit its ambitions and engage in some sustainable profitable business.
“It does get frustrating when they continue to spend quarter after quarter and they don’t let the revenue flow through,” “I’m definitely ready for profits.” said Michael Scanlon, who looks after USD 3.5 billion at Manulife Asset Management and holds Amazon shares.
But Mr CEO has something different to say. He wrote a letter to his stakeholders last year, insisting them on taking the long view.
While responding to their criticism about spending in his letter, Bezos said that investing in a “just-in-time fashion would be too clever by half.”
Investors say they are not only concerned over Amazon spending every dollar, but there should be provision for disclosure about where they are going.
“Most companies with the kind of gross revenue Amazon possess are not posting these kind of losses. You’ve got to give more information to justify faith in the name,” said Destination Wealth Management CEO Michael Yoshikami
Destination Wealth Management has sold its stake in Amazon last year.
Amazon always keeps its data close. The online tech giant don’t even reveals its basic details like number of Kindle tablets it has sold or media services or shipping. It believes this will hurt its progress against its competitors.