Posted on 11/14/2022 9:17:06 AM PST by EBH
Jeff Bezos has warned a US recession is looming, and advised consumers and businesses to stockpile cash in case there's a devastating downturn.
"The economy does not look great right now," Amazon's billionaire founder and executive chairman told CNN on Saturday.
"Things are slowing down, you're seeing layoffs in many, many sectors of the economy," he continued. "The probabilities say if we're not in a recession right now, we're likely to be in one very soon."
Bezos recommended American households delay big-ticket purchases such as new TVs, refrigerators, and cars, given the risk that economic conditions worsen. Similarly, he suggested small-business owners consider holding off on investments in new equipment, and build their cash reserves instead.
The e-commerce pioneer declined to estimate how long the recession could last, but he urged people to be ready for an economic disaster.
(Excerpt) Read more at msn.com ...
Those are coming. We’ve been living off 2021 yields.
Also many of the “shortage” will be more like cannot afford.
The proles say roast Bezos is quite tasty, better than Chef BoyArDee or generic Raisin Bran.
Don’t worry. Bill Gates is going to buy up all the farmland and Bezos is going to spend his billions on climate change. We are in good hands.
Does it matter if you have no home or food when you can have all the abortions you want?
“ the number look bad at Amazon, what must they be at other retailers?”
Proportional increase at brick and mortar after Covid hysteria cuts in to Amazon share.
My comment does not mean anything you just wrote,na very good post, is necessarily untrue.
But even in a great economy, people not being scared of Covid anymore would cause Amazon to take a hit in market share.
Btw, how many shares of Amazon do you have?
I agree with you on many levels having been in retail for decades.
Many in the tech sector that were/are making over 100,000 are going to find themselves really suffering and needing to move out of the ‘high rent’ districts of life.
And their ‘woke’ attitudes will not get them very far in the real world of work. (ouch)
Amazon had a boom because of Covid and now that’s falling as expected. But what is not expected was the recession on top of that. And that is where I think Bezo’s is giving the canary in the coal mine warning to those who have not been paying attention.
Overstock is everywhere right now. Walmart and Target have containers in the back parking lots of product because the stores have nowhere to put it. Orders have been drastically cut all across the board.
It is not just Amazon. Cuts are coming in January for even the brick and mortars after the selloff of inventory.
But, but haven’t you heard, if you’re white you ain’t never right and only white people can be racist?
I do not own any Amazon stock nor do I have any current plans to invest in Amazon. I liquidated all of my investments in retail companies two years ago.
I worked in retail for 35 years. I continue to talk to retailers and suppliers. My contacts, tell me business is currently tough online and in bricks and mortar. This perception is confirmed by the recent earnings of retailers and the current street expectations for Q3 and Q4 results.
September 29 Bed Bath and Beyond reported 29% decline in sales and a loss. A number of other retailers are reporting this month. The street expectation is Wal-Mart earnings tomorrow will be down 9%. Kohls reports November 17 and earnings are expected to be down 60%. Yahoo Finance expects Target sales to be up 2.5% and earnings down 31.6% when it reports Nov 16. Zachs is projecting Macy’s Q3 revenue to be down 4.9% and EPS to be down 84% when it reports Nov 17.
On September 7, Newell Brands, a large manufacturer of consumer and commercial hardwoods, cut its outlook for the remainder of 2022 due to lower retail orders. Hanesbrands, the apparel giant, reported a 6.6% drop in sales and 55% drop in earnings for Q3 last week. It attributed the decline and its forward negative guidance on declining consumer sales and tight inventory management by US retailers. Many other US retailers, and major suppliers to retail, are reporting negative sales and earnings for Q3 and calling down forward guideance. This is true of both online and bricks and mortar retail. Covid or no Covid, consumers have pulled back on spending in all distribution channels and most product categories. High single digit inflation and rising interest rates are putting the squeeze on discretionary spending.
As I indicated, Bezos sees the internal numbers. He knows people throughout the retail world, as well as key executives at major banks, who have insight into the performance of companies in the retail sector. He also likely subscribes to a number of data services that track brick and mortar and online sales. If he is issuing a warning about a slowing economy, he isn’t basing his concern on Amazon alone.
Right, I’m also a bigot heh.
“ Amazon reported 798,000 employees at the end of 2019 but had 1.6 million full- and part-time employees as of Dec. 31, 2021, a 102% increase. ”
Amazon DRAMATICALLY increased headcount during COVID-19. Even if there was no recession, COVID-19 is largely over as a pandemic. Did Bezos think Amazon could maintain that high headcount? Guess I don’t see how they could.
That's what I've thought all along, available but unaffordable.
Walmart Surges After Beating Expectations, Boosts Forecast, Unveils New $20BN Buyback
Headline this morning:
Walmart Surges After Beating Expectations, Boosts Forecast, Unveils New $20BN Buyback
Good for Wal-Mart, its employees and shareholders. Walmart is huge but is only one of many retailers. Let’s see how the other earnings reports come in for Q3 over the next two weeks. Even more critical for the economy, let’s see Q4 earnings. If they are good, the US may avoid a deep recession and the Federal Reserve will have more latitude in fiscal policy. It would be good for the long term health of the economy if the Fed can let interest rates adjust to market forces instead of being held artificially low.
>>You say that but the stock market indices between the start of October and now have shown a rather astonishing jump. Was that just artificially pumped up before the midterms and now we’re going to see the significant downturn that seems to be expected? This is me just mumbling by the way.....<<
That’s the plan according to the playbook. It doesn’t change.
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