Amazon delivery companies are telling their drivers to ignore jammed doors, damaged seatbelts, and broken mirrors, CNBC reports

Amazon delivery vans

Ten current and former drivers for delivery companies contracted by Amazon say they’ve been told by their managers ignore basic safety issues, like jamming doors, damaged seatbelts, low tire tread, busted rearview cameras, and broken mirrors.

Amazon contracts 2,000 private delivery firms through its DSP (delivery service partner) program, which accounts for 115,000 drivers in the US who help with the company’s daily fulfillment operations.

Read more: I’m a part-time Amazon delivery driver. Here’s how we cheat to get around the strict rules and constant monitoring.

The ten current and former drivers described instances where there was active concern for their own safety while driving an Amazon van, but were unable to report it. “Once we arrive at the lot, we have to personally conduct a 60-point check on our vehicles before we get assigned to our routes,” a part-time Amazon DSP driver told Insider in April. Chastity Cook, a former DSP driver in Illinois said to CNBC, “[managers would] tell us, just make sure everything’s great and go. We just checked down the list. We don’t even stop to read it and make sure everything is there.”

Courier Express One, Cook’s former DSP employer, did not respond to Insider’s request for comment.

Amazon invests millions into safety mechanisms in their delivery network, including regular compliance auditing, two daily vehicle checks, and taking delivery vans out-of-service if they need maintenance. But it can costs a DSP potential deliveries and revenue.

According to the DSP program brochure, DSP fleet owners earn revenue based on a rate based on the length of a delivery route and a rate based on the number of successfully delivered packages. Vehicle costs, including routine maintenance, damages, and insurance, are deducted as ‘ongoing operation costs.’

Amazon has had issues in the past with its delivery drivers’ alleging disturbing working conditions, with drivers speaking out about missing wages and strenuous shifts.

“When safety protocol is broken, we take various actions including ending our relationship with a DSP if warranted,” Amazon said in a statement made to Insider. “We’re actively investigating the experiences in [the CNBC] story and don’t believe they are representative of the more than 150,000 drivers that safely deliver packages every day.”

“The safety of drivers and communities is our top priority and the vast majority of DSPs and drivers share that commitment,” Amazon added.

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Amazon Warehouse is running a big sale with 20% off used products

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Amazon Boxes

Shoppers can save an additional 20% on select, already-discounted products from Amazon Warehouse. Amazon Warehouse offers discounts on used goods, like-new products, refurbished wares, and more.

This sale encompasses several categories including electronics, home and kitchen, tools, video games, appliances, and more. Be sure to check for the “Save 20% at checkout” tag under the product name. However, the stock is very limited.

The refurbished items featured in Amazon Warehouse are generally returns, or brand new units with minor cosmetic flaws that have been returned to “like new” quality by the manufacturer. While some may hesitate to buy refurbished, it doesn’t have to be a risky endeavor so long as you know what to look for.

For those willing to shop refurbished, great prices await. Better still, Amazon Warehouse offers free returns or replacements within 30 days of purchase, if you’re not satisfied with your purchase.

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Read more about how the Insider Reviews team evaluates deals and why you should trust us.

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US stocks slip as weak Amazon sales outlook highlights growth challenges for tech giants

Stock Market Traders

US stocks closed lower on the last trading day of the month, as a weak sales forecast from Amazon clouds the outlook for technology stocks.

After the close on Thursday, Amazon reported quarterly earnings that fell short of expectations, with the company missing quarterly sales estimates for the first time since 2018. Its sales and profit forecasts were below expectations, stoking concern among investors.

Shares of the e-commerce giant took their biggest tumble since May 2020, falling by as much as 8%. This translated to a loss of around $148 billion to Amazon’s market value.

Tech giants have been some of the pandemic’s biggest winners. However, Amazon’s latest report underscores the challenge of keeping the strong pace of sales as the economy reopens.

“While outlook was disappointing, and bears could argue Amazon is investing in 1-Day fulfillment out of competitive necessity, we think Amazon remains in a solid position, with US retail growth likely above industry growth rates,” Bank of America analysts Justin Post and Michael McGovern said in a Friday note.

Here’s where US indexes stood shortly after the 4:00 p.m. ET close on Friday:

Pinterest shares tumbled by 19% to a two-month low after the company reported a quarterly loss in active users on the social media site as easing of COVID-19 restrictions led more people to engage in other activities.

US stocks in recent weeks have climbed mostly higher as investors cheered robust corporate earnings and the accelerating pace of global economic recovery. The COVID-19 Delta variant, along with inflationary concerns, has dampened positive sentiment.

The S&P 500 still managed to close out its sixth straight month of gains.

The yield on the 10-year Treasury note was 1.231%, down by 3.8 basis points.

The Personal Consumption Expenditures price index – a closely monitored measure of nationwide inflation – gained 0.5% last month, suggesting that prices continued to climb amid supply chain issues across the US.

The reading exceeded the median estimate of a 0.4% increase from economists surveyed by Bloomberg. It also matched the May print of 0.5% growth.

Oil prices were up. West Texas Intermediate crude rose 0.41%, to $73.92 per barrel. Brent crude, oil’s international benchmark, increased 0.37%, to $76.33 per barrel.

Gold slipped 0.93% to $1,813.49 per ounce.

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‘Rinse, lather, buy the dip’: Here’s how 3 Wall Street analysts are reacting to Amazon’s 2nd-quarter earnings

Amazon Fresh UK store
Amazon Fresh UK store

  • Amazon’s mixed second quarter earnings results led to a more than 7% decline in the stock on Friday.
  • The company reported $113 billion in revenue, missing analyst estimates by about $2 billion.
  • Here’s how 3 Wall Street analysts reacted to Amazon’s second quarter earnings report.
  • Sign up here for our daily newsletter, 10 Things Before the Opening Bell.

Shares of Amazon fell more than 7% on Friday after the e-commerce giant released second quarter earnings results that beat profit estimates but missed revenue estimates.

Friday’s decline represented Amazon’s worst day since the onset of the COVID-19 pandemic in March of 2020, but Wall Street analysts remain bullish on the company’s long-term growth prospects.

Amazon reported second-quarter revenue of $113.1 billion and earnings per share of $15.12, missing analyst estimates of $115.1 billion and beating estimates of $12.32, respectively.

The company said it expects revenue of $106 billion to $112 billion in the third quarter, which would represent year-over-year growth of 10% to 16%. Still, that’s well below analyst estimates of $118.7 billion in third-quarter revenue. Amazon gave a wide third quarter guidance range for profits, guiding for $2.5 billion to $6.0 billion in operating income.

As investors navigate Amazon’s results, here’s how three Wall Street analysts reacted to the second quarter earnings report.

Stifel: “Rinse, lather, buy the dip.”

“While Amazon missed overall topline numbers, the shortfall was primarily concentrated in Online Stores which includes first party sales (the lowest multiple business line). The higher margin AWS, advertising, subscription and 3P business lines outperformed our expectations, with AWS growth accelerating sequentially,” Stifel said in a note on Thursday.

The firm said the current sell-off makes for an attractive setup “now that shares are on the other side of the COVID comp reset,” according to the note.

Stifel reiterated its Buy rating and $4,400 price target, and advised investors to take advantage of the 7% sell-off.

JPMorgan: “AWS & Advertising were bright spots in an otherwise tough quarter.”

“While street estimates will come down, Amazon is still running at a 2-year compound annual growth rate of 25% to 30%, which is above its pre-pandemic growth rate of ~20%,” JPMorgan said in a note on Thursday.

The bank noted that the weaker-than-expected earnings results were driven by higher labor costs, less operating leverage on slower volume growth, and marketing costs returning to more normalized levels.

“Amazon is still catching up with strong multi-year demand and 2021 is shaping up to be another big fulfillment build-out period on the heels of 50% square footage growth in 2020. Slower growth and increased investments make the shares more challenging near-term, but we expect revenue growth to normalize more around 20% next year and Amazon’s investments in fulfillment and logistics bode well for future growth,” JPMorgan said.

JPMorgan reiterated its Overweight rating and lowered its price target to $4,100 from $4,600.

Bank of America: “Reopening pressuring sales, but just a blip in long-term penetration trend.”

“While outlook was disappointing, and bears could argue Amazon is investing in 1-day fulfillment out of competitive necessity, we think Amazon remains in a solid position, with US retail growth likely above industry growth rates (indicating continued share gains). We still think the stock set up could benefit after 4Q guidance is provided (potentially removing an overhang), when Street can likely start looking forward to more normal growth comps in 2022,” BofA said.

Bank of America reiterated its Buy rating and lowered its price target to $4,250 from $4,300.

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1 out of every 153 American workers is an Amazon employee

amazon warehouse
  • Amazon employs 950,000 workers in the US, the company said in its latest earnings report.
  • The US has a population of 261 million and an employed non-farm workforce of 145 million, per the BLS.
  • More people work for Amazon than are employed in the entire residential construction industry.
  • See more stories on Insider’s business page.

Amazon has made more than $221 billion in sales in 2021 so far, showing just how massive the company has become since Jeff Bezos founded it in 1994.

Today the ecommerce giant employs 1.3 million people around the world, with 950,000 of those in the US, the company said in its latest earnings release.

According to the most recent US employment report, there are 145.8 million nonfarm payroll workers out of a total population of 332 million.

That means one out of every 350 Americans works for Amazon, or one out of every 153 employed workers in the US.

More people work for Amazon than are employed in the entire US residential construction industry, which is responsible for 873,000 jobs.

Even with its massive scale, Amazon is still a distant second to the country’s largest private employer, Walmart, which employs nearly 1.6 million people in the US, or one out of every 91 workers.

While it’s possible that more people work at a McDonald’s than either Amazon or Walmart – the fast-food brand estimates more than 2 million globally – the company primarily operates on a franchise model, so it directly employs less than 50,000 in the US.

Along with Amazon’s size, its decision to implement a $15 minimum wage across the company has had a measurable effect in the communities where it does business. It has also forced other large employers to follow suit.

In May, Amazon announced plans to hire 75,000 delivery and logistics workers at a $17 starting wage and a possible $1,000 bonus.

But last month, a New York Times report found that Amazon had a turnover rate of about 150% every year among hourly employees, leading some executives to worry about running out of hirable employees in the US.

In other words, with so many current and former Amazonians in the US, there’s a good chance that you know someone who’s worked there.

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Amazon sees $148 billion in market value wiped out after sales outlook misses forecasts

Amazon prime delivery
Amazon missed sales estimates in the second quarter.

  • Amazon fell as much as 8.1% in early trading, wiping $148 billion off the company’s market value.
  • Investors were disappointed after revenues missed estimates and Amazon forecast lower-than-expected sales.
  • Yet Amazon’s profit still jumped 50% year-on-year, and its cloud computing division outperformed.
  • Sign up here for our daily newsletter, 10 Things Before the Opening Bell.

Amazon lost $148 billion of market value on Friday in early trading after the e-commerce giant forecast lower-than-expected sales in the third quarter and missed revenue estimates for the first time since 2018.

Shares in the company dropped as much as 8.1% on the Nasdaq exchange on Friday. That took Amazon’s market capitalization – the value of all its shares combined – to $1.67 trillion, $148 billion lower than at Thursday’s close.

Amazon then pared losses to stand 7.02% lower at $3,351.86 by 10.13 a.m. ET. The drop helped drag down the Nasdaq 100 index by 0.5%.

The online retailer published second-quarter earnings after the bell on Thursday, showing that sales jumped 27% year-on-year to $113 billion. But investors were left underwhelmed, as analysts had predicted a rise in sales to around $115 billion.

The market was also disappointed by Amazon’s sales forecast for the third quarter, which came in below expectations. Amazon said operating profit would be between $2.5 billion and $6 billion, compared with $6.2 billion in the third quarter of 2020.

Amazon’s lower-than-expected sales and forecasts were in large part down to people choosing to do less online shopping as the coronavirus pandemic eased, chief financial officer Brian Olsavsky told analysts. The retailer was one of the major beneficiaries in the outbreak of COVID-19, as people went online to buy essentials and gadgets while locked down at home.

Read more: Baird’s top tech strategist says opportunities in the space are limited amid supply chain issues and dot-com-era valuations – and details 3 strategies investors can use to reposition away from risky tech

The second-quarter results were still astounding by most standards, but Amazon’s stock price has become a victim of the company’s success, said Nicholas Hyett, equity analyst at broker Hargreaves Lansdown.

“It’s saying something when you can report quarterly sales roughly equal to the annual GDP of Ukraine and 33% operating profit growth and still disappoint the market,” he said.

Amazon’s operating profit rose 33% year-on-year to $7.7 billion in the second quarter. Its net profit jumped 50% to $7.8 billion, beating expectations, as did revenues at the Amazon Web Services cloud division.

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US stocks slip as weak Amazon sales forecast clouds the outlook for tech giants

Stock Market Bubble
A trader blows bubble gum during the opening bell at the New York Stock Exchange (NYSE) on August 1, 2019, in New York City.

US stocks slipped Friday as a weak sales forecast from Amazon clouds the outlook for technology stocks.

On Thursday after the market close, Amazon’s quarterly earnings fell short of expectations, as the Seattle-based firm missed quarterly sales estimates for the first time since 2018. Its sales and profit forecasts were below expectations, further worrying investors about the economic outlook. Shares of the ecommerce giant slipped about 7% at the opening bell.

Tech giants have been some of the pandemic’s biggest winners. However, Amazon’s latest report underscores the challenge of keeping the strong pace of sales as the economy reopens.

“Consumers’ online shopping levels are returning normal as they shift some spending to other entertainment sources and offline shopping,” Dan Romanoff, equity analyst at Morningstar, said in a note. “We see no cracks in the long-term story as Amazon remains well-positioned to prosper from the secular shift toward e-commerce and the public cloud over the next decade.”

Here’s where US indexes stood shortly after the 9:30 a.m. ET open on Friday:

US stocks in recent weeks have climbed mostly higher as investors cheered robust corporate earnings and the accelerating pace of global economic recovery. The COVID-19 Delta variant, along with inflationary concerns, have dampened the positive sentiment.

Still, the benchmark S&P 500 is on track to close out a sixth straight month of gains.

The yield on the 10-year Treasury note was 1.251%, down by 1.8 basis points.

The Personal Consumption Expenditures price index – a closely monitored measure of nationwide inflation – gained 0.5% last month, suggesting that prices continued to climb amid supply chain issues across the US.

The reading exceeded the median estimate of a 0.4% increase from economists surveyed by Bloomberg. It also matched the May print of 0.5% growth.

Oil prices were mixed. West Texas Intermediate crude slipped 0.16%, to $73.50 per barrel. Brent crude, oil’s international benchmark, increased 0.9%, to $76.12 per barrel.

Gold slipped 0.41% to $1,823.04 per ounce.

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Companies like TikTok and Home Depot are racing to hire talent to build advertising businesses

Krystle Watler at Adcolor
Krystle Watler, head of creative agency partnerships in North America at TikTok

  • Big companies are on a hiring spree for advertising execs.
  • Retailers and platforms like Instacart, Kroger, and TikTok are building ad businesses of their own.
  • Insider identified a large and diverse group of recent hires.
  • See more stories on Insider’s business page.

It’s a good time to work in advertising.

Big companies including retailers, delivery companies and new platforms are on a hiring spree for advertising execs as they build out their own ad-sales businesses. Walmart, Macy’s, Walgreens, and Home Depot are setting up retail media platforms to offset thin retail margins. Amazon is gobbling up adtech expertise to sell a variety of ad formats to brands. And even digital platforms like TikTok and Spotify are vying for social and audio ad dollars.

Insider identified 43 recent advertising hires from companies including Home Depot, Instacart, TikTok, Amazon, Drizly, and Spotify that show how these businesses are making big hiring pushes for advertising execs.

They’re hiring from media companies, tech giants, and ad agencies, which are already in a hiring crunch.

Click here to see the full list of big hires.

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Amazon has been fined a record $887 million for violating data privacy rules in Europe

Andy Jassy
The CNDP claimed that Amazon’s processing of personal data did not comply with EU General Data Protection Regulations.

  • Amazon has been hit with a record $887 million EU fine by Luxembourg’s data protection authority.
  • The authority says Amazon’s processing of personal data didn’t comply with EU rules.
  • Amazon said it would defend itself “vigorously” against the decision, which was “without merit.”
  • See more stories on Insider’s business page.

Amazon has been fined €746 million ($887 million) by Luxembourg authorities for violating EU privacy rules.

Luxembourg’s data protection authority, the Luxembourg National Commission for Data Protection (CNDP), imposed the record EU fine against Amazon Europe on July 16, per an SEC filing on Friday by the tech giant.

The CNDP claimed that Amazon’s processing of personal data for advertising did not comply with EU General Data Protection Regulations.

Read more: Salespeople from Amazon Web Services are ‘discontent’ and ready to be poached by Google Cloud, a partner tells UBS analysts

Amazon said it would appeal.

“The decision relating to how we show customers relevant advertising relies on subjective and untested interpretations of European privacy law, and the proposed fine is entirely out of proportion with even that interpretation,” an Amazon spokesperson told Insider.

The company said in the SEC filing: “We believe the CNPD’s decision to be without merit and intend to defend ourselves vigorously in this matter.”

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Amazon tumbles close to 7% premarket, after missing sales estimates for the first time since 2018 as the pandemic boom cooled

Amazon prime delivery
Amazon missed sales estimates in the second quarter.

  • Amazon’s stock fell 6.5% in premarket trade after it missed quarterly sales estimates for the first time since 2018.
  • The online retailer’s Q2 earnings report gave sales and profit forecasts that underwhelmed investors.
  • Nonetheless, Amazon still posted a 50% jump in profit Thursday, and its cloud division beat expectations.
  • Sign up here for our daily newsletter, 10 Things Before the Opening Bell.

Amazon‘s stock price fell 6.5% in premarket trading to $3,365 after it missed quarterly sales estimates for the first time since 2018 in its second-quarter earnings, as the pandemic-driven online spending frenzy cooled.

The e-commerce giant’s revenues jumped 27% year-on-year to $113 billion, its earnings report released after the market closed Thursday showed. But investors were left underwhelmed, as analysts had predicted a rise in sales to around $115 billion.

The market was also reacting to Amazon’s prediction that third-quarter revenue would come in slightly lower than analysts had been anticipating. It also said operating profit would be between $2.5 billion and $6 billion, compared with $6.2 billion in the third quarter of 2020.

Amazon’s lower-than-expected sales were in large part down to people choosing to shop online less as the coronavirus pandemic eased, the company’s chief financial officer, Brian Olsavsky, told analysts. The retailer was one of the major beneficiaries in the outbreak of COVID-19, as people went online to buy essentials and gadgets while locked down at home.

Read more: Baird’s top tech strategist says opportunities in the space are limited amid supply chain issues and dot-com-era valuations – and details 3 strategies investors can use to reposition away from risky tech

The second-quarter results were still astounding by most standards, but Amazon’s stock price has become a victim of the company’s success, said Nicholas Hyett, equity analyst at broker Hargreaves Lansdown.

“It’s saying something when you can report quarterly sales roughly equal to the annual GDP of Ukraine and 33% operating profit growth and still disappoint the market. You can see why Jeff Bezos would rather be jetting off into space,” he said.

Amazon’s operating profit rose 33% year-on-year to $7.7 billion in the second quarter. Its net profit jumped 50% to $7.8 billion, beating expectations, as did revenues at the Amazon Web Services cloud division.

Futures for the tech-heavy Nasdaq 100 were down 0.99% on Friday, in part because of investor reaction to Amazon’s earnings. Lower-than-expected second-quarter GDP figures and rising coronavirus cases also unnerved traders.

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