Amazon has been hit hard by the wheels. The multinational reported a loss of around US$3.8 billion for the first quarter of 2022. A year earlier, the company reported a profit of US$8 billion for the same period. The gold rush vibe seems to have faded. Amazon CEO Andy Jassy explains the weak results. “The pandemic and subsequent war in Ukraine has brought about unusual growth and challenges.” Ongoing inflation and supply chain pressures are to blame, Jassy said. Amazon founder Jeff Bezos had and still has a different opinion.
Bankruptcy of Amazon: “We must try to delay this day as long as possible”
Bezos founded Amazon in his garage in 1994. He was the one who transformed a small online book retailer into a global company. And society made Bezos the richest man in the world. But Bezos always reacts introspectively when it comes to his business. And he also knows, “Amazon isn’t too big to fail.” According to CNBC, Bezos told an employee a few years ago. But that’s not all.
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“In fact, I predict that Amazon will fail one day,” said the group’s boss. “Amazon is going bankrupt.” Bezos explains that other big companies usually don’t live past 30 either. There are exceptions, and Bezos knows that too. “Most companies that are hundreds of years old are breweries,” he once said with a laugh.
Bezos is not worried
When Bezos made these statements, it was in the midst of Amazon’s unprecedented growth and success. And even during the pandemic, business has boomed. But now that masks can be removed in many places, people are keen to go out again. The coming months will show whether they will also spend less online and find their way back to physical retail.
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However, the quarterly figures now presented may indicate what the boss of Amazon had already prophesied in 2018. The end of Amazon. But it’s not that far yet. Because even if the group made a loss of nearly 4 billion dollars: Sales have largely exceeded 100 billion dollars. On the other hand: Amazon will be exactly 30 years old in 2024. But even if the online retailer were to disappear, that wouldn’t worry Bezos, as he said on American television a few years ago. “Because I know there’s nothing I can do about it. Businesses come and go.” And according to Bezos, that applies to even the most dazzling and important of their time.
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