This article is from the public number:Geek Park (ID:geekpark) author: Shen know Han, from thematic map: vision China.

Eastern Time On October 24th, Amazon released its third quarter earnings report for 2019. The financial report shows that Amazon’s third quarter revenue is 69.98 billion, a year-on-year increase of 24%, higher than market expectations. Net profit was US$2.134 billion, down 26% from US$2.883 billion, which did not meet market expectations. This is the first year-on-year growth in profit since the third quarter of 2017.

Affected by this, the stock price fell by a maximum of 8.1%. Bezos’ personal equity net worth fell to $102.8 billion, nearly $5 billion less than Bill Gates.

Overall, Amazon’s sales in the first three quarters of this year were US$59.7 billion, US$63.4 billion, and US$69.98 billion, respectively. The year-on-year growth rate also maintained an upward trend of 17%, 20% and 24%. But behind the growth is a bloody operating expense. Operating profit for the third quarter was $3.157 billion, down 15% from $3.724 billion in the same period last year, and the first two quarters were up 129% and 3%.

But in the earnings conference call, Amazon still showed confidence in the company’s current situation and the desire to exchange short-term benefits for long-term returns.

“Bleeding” for growth

Amazon’s third-quarter revenue was US$69.98 billion, of which e-commerce revenue was US$35.04 billion, and physical retail revenue was 4.192 billion, up and down 21% and 1.3% respectively. Amazon hinted that the fourth-quarter profit outlook, including the holiday season, is weak, with operating profit expected to be $1.2-2.9 billion, down from $3.8 billion in the same period last year, and analysts forecasting $4.3 billion, with revenue expected to be $80 billion. It is in the range of $86.5 billion, which is lower than the market estimate of $87.39 billion.

Amazon CFO Brian Olsavsky revealed in a conference call that revenues did not meet expectations, in part because the growth impact of the acquisition of Whole Foods disappeared. From the third quarter of 2017, Amazon’s quarterly revenue growth remained above 34% until the fourth quarter of 2018, revenue growth began to return to normal.

What is the real reason for the decline in net profit?

In the third quarter, operating expenses were US$66.82 billion, a year-on-year increase of 26.4%, which was higher than revenue growth. The revenue cost was US$41.3 billion, a year-on-year increase of 25.1%, and the revenue cost rate was 59.01%, up 0.7 percentage points year-on-year. Remove revenue