Question

Are each company’s revenues and expenses increasing or decreasing? Amazon and Netflix

Answer 1

Answer:-

increasing or decreasing of revenue:-

Revenues decrease for any number of reasons. Manufacturing or delivery problems result in reduced product availability. Consumer tastes change and demand for your goods declines. Economic conditions force consumers to spend less on discretionary purchases.

Revenue increase, may be possible for many reasons like

• increase the number of customers.
• Increase the average transaction size.
• Increase the frequency of transactions per customer.
• Raise your prices.

Amazon :-

Amazon Web Services, the company’s highly profitable cloud computing business, had a strong quarter, though Amazon executives said reduced demand from clients in the hospitality and travel sectors limited growth. Revenue went up 32.8% to $10.219 billion from $7.696 billion, and operating income jumped 38.3% to $3.075 billion, accounting for more than 77% of the company’s total operating income of $3.989 billion.

Analysts had predicted Amazon’s sales would go up as many stores closed and shoppers turned to the web to buy groceries and other products.“Amazon’s huge topline acceleration isn’t a complete surprise amid the pandemic’s shifting consumer spending in favor of ecommerce and online grocery,” says Andrew Lipsman, principal analyst as market research firm eMarketer.

“The bottom-line performance was on the lighter side, but not altogether unexpected in light of the commerce business’s escalating costs of labor and delivery logistics and shift in mix towards less profitable categories like grocery,”

Netflix:-

Netflix, Inc. (NFLX) is a media company that offers consumers the ability to buy movie and TV entertainment services. Though the company has since adapted to a largely subscription-based model allowing customers to watch streaming television and movies online, Netflix still offers its original DVD service. Since the fourth quarter 2019, Netflix operates as a single business segment, no longer reporting across domestic streaming, international streaming, and domestic DVD segments.But after entering ott platform it increasing its revenue because of better service, coustmer loyality and good quality of content.