The goal is too keep releasing new products and services for the Kindle and Amazon Prime Video. The top ten selling items in the second quarter were Digital products such as the Kindle Fire and other digital content. Although Amazon has numerous investors and hit its all time high of 312. 01 in quarter two of July, 26,2013, they reported a loss Of 7 million dollars the same day and instantly the stock price dropped to 306. 1 on July, 27,2013. The loss comes from the investments the company is making for its long-term goals.
The vital investments the many has been making are towards web services, online security known as cloud services. The reported loss affected the stock price with a decline for the month of August (Ray, 1). With the preparation done for the holiday seasons Amazon hired nearly 70,000 workers to assist during the shopping season. Amazon introduced a new program called “Amazing Selling Machine” in order to educate and teach upcoming entrepreneurs about success in the e-commerce market. 40 percent of Amazon’s business comes from 2 million entrepreneurs selling their products on Amazon. Mom. These record-breaking numbers are real proof that not only is Amazon growing, but business owners that sell products on Amazon are growing and expanding,” says Ryan Caisson of Ramifications. Com. Amazon does well during the holiday season, from September to January. The stock prices range from 312. 034 – 403. 1 and hit its all time high of 407. 1 during the third and fourth quarter (Thomson Reuters). Amazon released its new product the Kindle Fire just in time for the holiday season. The new Kindle gave its competition a real fight because of the period technology it has to its competitors products and the low retail price Amazon offered.
The release of the new Kindle Fire increased Amazon’s net sales by 24 percent, which led to an increase in shares by 7 percent (Vogue, 2). In October, Amazon had a runaway gap and increase in volume of stocks. The stocks rose from 310. 770 on October, 17,201 3 to 328. 931 the next day. On October 24 the stocks increased from 332. 210 to 363. 390 the next day, which was an all time high for Amazon (Wang, 2). This thirty-point increase as from the result of a company Amazon had acquired on that day. Catamaran Ventures and Birched Ventures announced that they had completed their sale of the company Denmark to Amazon.
Denmark is a company that helps teachers and parents deliver innovative mathematics curriculum for students across the country. This is big investment for Amazon because they now have the ability to expand in the K-1 2 education technology. This is just the beginning of an innovative way to develop cloud and tablet solutions to improve student’s convenience and academic outcomes (Patterson, Thomson Reuters). Amazon’s prime memberships have expectations to deliver significant sales over the holiday season. There a few factors that contributes to the increase in fourth quarter sales and stock increase.
The company’s prime membership subscriptions are expected to increase over the holiday. Previous prime members are statistically known to purchase on average twice as much as other customers. All prime members generate 10 percent sales for Amazon according to company filings with the Securities and Exchange Commission. The National Retail Federation IS also predicting a 15 percent increase in sales for all online retailers from the previous year (Columbus, 2). This was shown in the revenue increase for Amazon from the year 2012 to 2013.
In 2012 the revenue was 21. 27 billion dollars and it increased to 25. 59 billion dollars in 2013. The high expectations for this holiday season resulted in a gradual increase on stock prices from the end of the third quarter to the rest of the year (Thomson Reuters). Although Amazon Was expected to have a great quarter from the holiday season it was ongoing into a heavily competitive season. They experienced lower growth in the cloud computing and digital media services with the addition of underperforming international business.