Amazon will look to spark some life back into its shares next week when it unveils its third quarter results.
The online giant has seen shares fall almost a third this year – setting it on track for its worst year since 2008.
Profits are being hurt by spiralling costs while a squeeze on family finances has seen a drop in consumer spending.
Boss Andy Jassy, who took over from founder Jeff Bezos last July, has embarked on a wave of cost-cutting measures, including a freeze on hiring.
And he has pushed through huge price increases for subscriptions to Amazon’s Prime service – which offers free delivery and access to its TV shows and films.
In the UK, the yearly cost of a subscription is jumping by a fifth from £79 to £95.
Investors will be hoping for evidence that its plan is working when it updates the stock market on Thursday.
Analysts will also be watching for any sign that price increases are leading to customers trading down to cheaper alternatives. And they will be looking for updates on its expansion into more profitable areas, including its launch of an insurance price comparison website in the UK last week.
Hargreaves Lansdown analyst Susannah Streeter said it is Amazon’s ‘ease of use that keeps giving it the edge over the competition’.
But she added: ‘However, it may find that amid the cost of living crisis, consumers will prioritise value over efficiency, giving more resilience to price competitive rivals.’
