Employees pack boxes of merchandise at an Amazon.com  fulfillment center in Peterborough, UK. Amazon has forecast a potential quarterly loss for the first time in two years. Simon Dawson/Bloomberg
Employees pack boxes of merchandise at an Amazon.com fulfillment center in Peterborough, UK. Amazon has forecast a potential quarterly loss for the first time in two years. Simon Dawson/Bloomberg

Amazon reminds investors that dominating e-commerce has a price




Amazon.com  reminded investors that luring shoppers away from stores and dominating the cloud-computing industry isn't cheap.
The company on Thursday forecast a potential quarterly loss for the first time in two years. Amazon said it's boosting spending on new warehouses to meet growing e-commerce demand, data centers for its Amazon Web Services division, video programming to keep customers engaged and gadgets like the Echo line of voice-activated speakers to stay on the cutting edge of the emerging smart-home market.
The outlook underscored the high cost of Amazon's business model, which consistently delivers big sales gains and plows a chunk of that money back into the company by hiring workers, expanding its footprint and launching new products.
Chief Financial Officer Brian Olsavsky said Amazon's expenses would climb in the second half of the year as it hires workers and works out the kinks in new warehouses to prepare for the peak shopping season. That's why Amazon projected operating income in the current period ranging from a loss of US$400 million to a gain of $300m. The last projected quarterly loss came in July 2015 for similar reasons.
The third quarter "is generally a high investment period for the holiday," he said.
Analysts estimated operating profit of $863.5m, and shares fell as much as 4.3 per cent to $1,001.80 in extended trading Thursday after the forecast and earnings were reported. Amazon's stock has gained 39 per cent this year, and earlier Thursday chief executive  Jeff Bezos briefly surpassed Microsoft co-founder Bill Gates to be the world's wealthiest person, before falling back to the No. 2 spot as Amazon's shares declined.
"Spending is always a concern with Amazon, but investors eventually give Amazon a pass because Amazon invests in growth opportunities," said Victor Anthony, an analyst at Aegis Capital.
Amazon didn't wait until the second half to pick up the pace of spending. Second-quarter expenses increased 28 per cent to $37.3 billion, the Seattle-based company said in a statement.
Investors have put increasing faith in Bezos to keep Amazon growing by entering new categories such as groceries and appliances and expanding abroad. The company is moving into India and Australia, speeding up delivery times to as little as an hour on select products, adding new skills and devices for its voice-activated Alexa platform and producing more original movies and shows. Amazon hired more than 30,000 new employees "in the last few months," Bezos said in the statement.
Second-quarter sales gained 25 per cent to $38bn, topping analysts' projections of $37.2bn, according to data compiled by Bloomberg. Net income declined to $197m, or 40 cents a share, from $857m, or $1.78 a share, a year earlier. Analysts estimated profit of $1.42 a share, according to data compiled by Bloomberg.
Net sales in the third quarter will be $39.25bn to $41.75bn -- growth of 20 per cent to 28 per cent from a year earlier. Analysts estimated $40bn.
The forecast excludes Amazon's proposed $13.7bn deal for Whole Foods Market, where the company is betting it can replicate its online selling success. With 460 stores across the US, the acquisition is a major push into the $800bn grocery category dominated by Wal-Mart Stores, which has more than 26 per cent of the market. The upscale grocery-store chain on Wednesday reported improving results in the second quarter, with sales declining less than analysts expected.

Amazon dominates e-commerce in the U.S. with its $99-a-year Amazon Prime subscription, which includes delivery discounts, music and video streaming and is intended to keep shoppers engaged with the website. The company had 85 million Prime subscribers in the US as of June 30, an increase of 35 per cent from a year earlier, according to Consumer Intelligence Research Partners. Amazon's subscription services revenue, which is mostly from Prime memberships, increased 51 per cent to $2.17bn in the second quarter -- faster than 49 per cent in the previous quarter. The company doesn't disclose the number of Prime subscribers.
Revenue from Amazon Web Services, its profitable cloud-computing division, increased 42 per cent to $4.1bn. The unit's sales increased 43 per cent in the previous quarter.
Sales of warehousing, packaging and other logistics services Amazon provides for e-commerce merchants increased 38 per cent to $7bn. That's faster than 34 per cent in the previous quarter.

*Bloomberg

COMPANY PROFILE

Company name: Almouneer
Started: 2017
Founders: Dr Noha Khater and Rania Kadry
Based: Egypt
Number of staff: 120
Investment: Bootstrapped, with support from Insead and Egyptian government, seed round of
$3.6 million led by Global Ventures

As it stands in Pool A

1. Japan - Played 3, Won 3, Points 14

2. Ireland - Played 3, Won 2, Lost 1, Points 11

3. Scotland - Played 2, Won 1, Lost 1, Points 5

Remaining fixtures

Scotland v Russia – Wednesday, 11.15am

Ireland v Samoa – Saturday, 2.45pm

Japan v Scotland – Sunday, 2.45pm

The Mandalorian season 3 episode 1

Director: Rick Famuyiwa

Stars: Pedro Pascal and Katee Sackhoff

Rating: 4/5 

EMIRATES'S REVISED A350 DEPLOYMENT SCHEDULE

Edinburgh: November 4 (unchanged)

Bahrain: November 15 (from September 15); second daily service from January 1

Kuwait: November 15 (from September 16)

Mumbai: January 1 (from October 27)

Ahmedabad: January 1 (from October 27)

Colombo: January 2 (from January 1)

Muscat: March 1 (from December 1)

Lyon: March 1 (from December 1)

Bologna: March 1 (from December 1)

Source: Emirates

The specs

Engine: 2.0-litre 4-cylinder turbo

Power: 240hp at 5,500rpm

Torque: 390Nm at 3,000rpm

Transmission: eight-speed auto

Price: from Dh122,745

On sale: now

Timeline

1947
Ferrari’s road-car company is formed and its first badged car, the 125 S, rolls off the assembly line

1962
250 GTO is unveiled

1969
Fiat becomes a Ferrari shareholder, acquiring 50 per cent of the company

1972
The Fiorano circuit, Ferrari’s racetrack for development and testing, opens

1976
First automatic Ferrari, the 400 Automatic, is made

1987
F40 launched

1988
Enzo Ferrari dies; Fiat expands its stake in the company to 90 per cent

2002
The Enzo model is announced

2010
Ferrari World opens in Abu Dhabi

2011
First four-wheel drive Ferrari, the FF, is unveiled

2013
LaFerrari, the first Ferrari hybrid, arrives

2014
Fiat Chrysler announces the split of Ferrari from the parent company

2015
Ferrari launches on Wall Street

2017
812 Superfast unveiled; Ferrari celebrates its 70th anniversary

KEY DATES IN AMAZON'S HISTORY

July 5, 1994: Jeff Bezos founds Cadabra Inc, which would later be renamed to Amazon.com, because his lawyer misheard the name as 'cadaver'. In its earliest days, the bookstore operated out of a rented garage in Bellevue, Washington

July 16, 1995: Amazon formally opens as an online bookseller. Fluid Concepts and Creative Analogies: Computer Models of the Fundamental Mechanisms of Thought becomes the first item sold on Amazon

1997: Amazon goes public at $18 a share, which has grown about 1,000 per cent at present. Its highest closing price was $197.85 on June 27, 2024

1998: Amazon acquires IMDb, its first major acquisition. It also starts selling CDs and DVDs

2000: Amazon Marketplace opens, allowing people to sell items on the website

2002: Amazon forms what would become Amazon Web Services, opening the Amazon.com platform to all developers. The cloud unit would follow in 2006

2003: Amazon turns in an annual profit of $75 million, the first time it ended a year in the black

2005: Amazon Prime is introduced, its first-ever subscription service that offered US customers free two-day shipping for $79 a year

2006: Amazon Unbox is unveiled, the company's video service that would later morph into Amazon Instant Video and, ultimately, Amazon Video

2007: Amazon's first hardware product, the Kindle e-reader, is introduced; the Fire TV and Fire Phone would come in 2014. Grocery service Amazon Fresh is also started

2009: Amazon introduces Amazon Basics, its in-house label for a variety of products

2010: The foundations for Amazon Studios were laid. Its first original streaming content debuted in 2013

2011: The Amazon Appstore for Google's Android is launched. It is still unavailable on Apple's iOS

2014: The Amazon Echo is launched, a speaker that acts as a personal digital assistant powered by Alexa

2017: Amazon acquires Whole Foods for $13.7 billion, its biggest acquisition

2018: Amazon's market cap briefly crosses the $1 trillion mark, making it, at the time, only the third company to achieve that milestone

COMPANY PROFILE

Name: Xpanceo

Started: 2018

Founders: Roman Axelrod, Valentyn Volkov

Based: Dubai, UAE

Industry: Smart contact lenses, augmented/virtual reality

Funding: $40 million

Investor: Opportunity Venture (Asia)

if you go
Confirmed bouts (more to be added)

Cory Sandhagen v Umar Nurmagomedov
Nick Diaz v Vicente Luque
Michael Chiesa v Tony Ferguson
Deiveson Figueiredo v Marlon Vera
Mackenzie Dern v Loopy Godinez

Tickets for the August 3 Fight Night, held in partnership with the Department of Culture and Tourism Abu Dhabi, went on sale earlier this month, through www.etihadarena.ae and www.ticketmaster.ae.

10 tips for entry-level job seekers
  • Have an up-to-date, professional LinkedIn profile. If you don’t have a LinkedIn account, set one up today. Avoid poor-quality profile pictures with distracting backgrounds. Include a professional summary and begin to grow your network.
  • Keep track of the job trends in your sector through the news. Apply for job alerts at your dream organisations and the types of jobs you want – LinkedIn uses AI to share similar relevant jobs based on your selections.
  • Double check that you’ve highlighted relevant skills on your resume and LinkedIn profile.
  • For most entry-level jobs, your resume will first be filtered by an applicant tracking system for keywords. Look closely at the description of the job you are applying for and mirror the language as much as possible (while being honest and accurate about your skills and experience).
  • Keep your CV professional and in a simple format – make sure you tailor your cover letter and application to the company and role.
  • Go online and look for details on job specifications for your target position. Make a list of skills required and set yourself some learning goals to tick off all the necessary skills one by one.
  • Don’t be afraid to reach outside your immediate friends and family to other acquaintances and let them know you are looking for new opportunities.
  • Make sure you’ve set your LinkedIn profile to signal that you are “open to opportunities”. Also be sure to use LinkedIn to search for people who are still actively hiring by searching for those that have the headline “I’m hiring” or “We’re hiring” in their profile.
  • Prepare for online interviews using mock interview tools. Even before landing interviews, it can be useful to start practising.
  • Be professional and patient. Always be professional with whoever you are interacting with throughout your search process, this will be remembered. You need to be patient, dedicated and not give up on your search. Candidates need to make sure they are following up appropriately for roles they have applied.

Arda Atalay, head of Mena private sector at LinkedIn Talent Solutions, Rudy Bier, managing partner of Kinetic Business Solutions and Ben Kinerman Daltrey, co-founder of KinFitz

COMPANY PROFILE

Company name: Revibe
Started: 2022
Founders: Hamza Iraqui and Abdessamad Ben Zakour
Based: UAE
Industry: Refurbished electronics
Funds raised so far: $10m
Investors: Flat6Labs, Resonance and various others

ABU DHABI'S KEY TOURISM GOALS: BY THE NUMBERS

By 2030, Abu Dhabi aims to achieve:

• 39.3 million visitors, nearly 64% up from 2023

• Dh90 billion contribution to GDP, about 84% more than Dh49 billion in 2023

• 178,000 new jobs, bringing the total to about 366,000

• 52,000 hotel rooms, up 53% from 34,000 in 2023

• 7.2 million international visitors, almost 90% higher compared to 2023's 3.8 million

• 3.9 international overnight hotel stays, 22% more from 3.2 nights in 2023


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