In the past, Amazon behaved like a perfect customer for its own website. It gives a free hand to all the big investors of the company.
On the other hand, investors showed confidence on the investment strategies created by Jeff Bezos.
17 years ago when the online retailer filed the IPO people expected it to face several unpredicted losses in the future. However, Amazon put in a large amount of money in order to expand the business and sales.
Afterwards, Bezos tried to create some extremely innovative tactics for shopping, ebooks and cloud in order to produce considerable profit. Unfortunately, these new programs consume most of the revenue of the company.
Earlier, it looked like investors are interested in the long game of Bezos. Nowadays, it seems like all the investors are fed up of this game.
On Thursday, the company reported a huge loss in the third quarter. Moreover, Amazon delivered a distressing prediction regarding to the upcoming holidays.
Shortly, after this declaration investors nearly put up for sale 10 percent of the shares. It signifies that the firm has almost lost 28 percent of its original worth. This 28 percent is approximately $287.06 as per the Friday reports.
A Synovus Trust portfolio manager, Daniel Morgan stated that he possesses some of the shares of Amazon. Currently, he has no intention of selling them, but sadly not all of the investors think like Morgan.
Generally, Investors want the reason from the companies for such a huge loss. It becomes really difficult for any company to satisfy their investors at this kind of tough time. Especially when they have another option to invest their precious money.
Same is the case with Amazon, now investors consider putting their money in Alibaba. Alibaba is a Chinese e-commerce company which recently generated the largest revenue.