Moody's analyst on Amazon: 'I would be shocked if next-day delivery has been a raging success'
Amazon (AMZN) is slated to report quarterly results this Thursday after the bell. The e-commerce giant is expected to report adjusted earnings per share of $7.06 on revenue of $68.70 billion dollars, according to analysts polled by Bloomberg. And one expert predicts Amazon’s nationwide rollout for one-day prime shipping will remain top of mind for investors.
“Historically when Amazon has been investing like it is now with all the investments in next-day delivery, they’re not so worried about margins. So they will do whatever they have to do to grow the top line. And I think that’s what we’re going to see for Q3,” Charlie O'Shea, Moody's retail analyst, told Yahoo Finance’s “The Ticker.”
But O’Shea noted, “I would be shocked if next-day delivery has been a raging success.” He forecasts the company still has a tough road ahead as it works to ship without a brick-and-mortar network and will need to ramp up spending in order to streamline the process.
“I liken it to buying a house to renovate. You don’t know what you have until you start ripping off the plaster and drywall. And when you start messing around with supply chain, faster delivery times, and getting product close to the customer, there’s a lot of things that need to be done. And I think Amazon learned some of that in Q2. They’ll learn more in Q3,” O’Shea said.
Amazon’s stock has fallen nearly 10% in the last 3 months.
McKenzie Stratigopoulos is a producer at Yahoo Finance. Follow her on Twitter: @mckenziestrat
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