Worried analysts question Amazon's logistics plans - Reuters
In the wake of Amazon.com Inc's disappointing financial results that sent shares plunging Thursday, analysts blamed rising costs to deliver goods, which increased to $4.5 billion in the quarter, up 24.4 percent from the same quarter last year.
And they sharply questioned the company's plans to continue to make heavy investments in logistics, even at the expense of profits.
They wondered why it was planning to buy more assets like trucks, and reportedly to lease jets, and worried it planned to spend the money to take on shippers like United Parcel Service Inc.
In the wake of Amazon.com Inc's disappointing financial results that sent shares plunging Thursday, analysts blamed rising costs to deliver goods, which increased to $4.5 billion in the quarter, up 24.4 percent from the same quarter last year.
And they sharply questioned the company's plans to continue to make heavy investments in logistics, even at the expense of profits.
They wondered why it was planning to buy more assets like trucks, and reportedly to lease jets, and worried it planned to spend the money to take on shippers like United Parcel Service Inc.
