Amazon faces intense competition across various sectors. International operations expose the company to fluctuating exchange rates, political and economic instability, and regulatory hurdles. Product demand volatility, inventory management risks, and potential security breaches are also significant concerns. Legal proceedings, including patent infringement lawsuits and antitrust investigations, pose substantial financial and reputational risks. Supplier relationships and commercial agreements present risks of supply disruptions and unfavorable terms. Acquisitions and investments carry integration challenges and potential impairment of assets. Tax liabilities and collection obligations are subject to change and controversy.
Financial Upside
Amazon's net sales and operating income have increased year-over-year. The company anticipates continued growth in the fourth quarter of 2024. A change in the estimated useful life of servers has positively impacted depreciation and amortization expense, benefiting net income. Increased customer usage and favorable foreign exchange rates have also contributed to the positive financial outlook.
