PhillipCapital analyst Timothy Ang has kept his “buy” call on Amazon Inc, revising his FY21E PATMI down 10% on higher guidance of labour and fulfilment costs for 4Q21E. 

On the e-commerce front, Amazon is absorbing higher costs from rising wages and productivity losses from labour shortages, higher steel prices as well as trucking and container capacity costs. These increased 2Q21 operating expenses by US$2 billion — 2% of its revenue, leading to operating expenses spiking twice faster than revenue. 


See: Big Tech’s valuations are cheapest in three years after slump


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