When Amazon reports third-quarter earnings after the closing bell Thursday, the retail giant is expected to provide updates on its aggressive push into next-day delivery.
In April, the company said it planned to spend $800 million to shave a day off its Prime two-day shipping guarantee.
In the past, analysts have estimated the initiative could add billions to Amazon’s revenue. But it’s still unclear whether the company will be able to expand the program while controlling costs.
Amazon has rarely ever been afraid to sacrifice profits for growth, and analysts expect investors are eager to see how deep the company’s expansion into one-day shipping cuts into margins
Wall Street is expecting Amazon to report about $3.93 billion in profit on $68.7 billion in sales for the quarter. During the same period last year, Amazon generated $2.88 billion in profit and $56.58 billion in revenue.
Source: Business Insider
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