The company’s sales figures are expected to improve from $19.34 billion up to $20.848 billion. Its third-quarter losses are also expected to increase up to $403.27 million.
Unlike many of the US major corporations Amazon’s track record is patchy at best, as it has failed to meet market expectations almost half the time since the first quarter in 2011.
Amazon has been involved in numerous battles over the cost of literature across different formats. The company’s discussions with Hachette Book Group could at best be described as robust. In contrast it has managed to agree a multi-year deal with Simon & Schuster over pricing for both hard copies and digital books. It is believed that the split will entitle Amazon to 30% of the proceeds with both the author and publisher getting 35%.
Amazon has driven for prices to be lowered as it believes that lower costs will drive up sales and ultimately improve revenues. Considering the company accounts for roughly 60% of the online market its opinion counts.
The share price has recently dropped below $300, but the more recent good news regarding the Simon & Schuster deal should help prop it up. However this is only in the short term before we see a retest of the May $284 lows.