17 Sep 2021
Posted in Business Fundamentals
Amazon’s sentiments skyrocket in Q3 2021 driven by innovative offerings and expansion optimism, says GlobalData
Amazon’s earnings transcript sentiments were 7% higher than FedEx in Q3 2021*, suggesting that the e-commerce giant is more optimistic compared to its counterpart, according to GlobalData. The leading data and analytics company notes that Amazon’s Q3 sentiments were up compared with last year, driven by the company’s plans to further expand its delivery business by shipping cargo and products that are not purchased directly on its site.
Rinaldo Pereira, Business Fundamentals Analyst at GlobalData, comments: “Amazon’s optimism around ‘Fulfilled by Amazon’ (FBA)** and third-party sellers boosted its sentiments in Q3 2021. At the same time, positivity around earnings was also a driver. ‘Delivery Efficiency and Speed’ was a key retail theme for Amazon in Q3 2021, with investment around transportation and delivery network also gaining key mentions.”
Another interesting theme for Amazon was ‘Innovation’, with sentiments up by over 2% in 2021 (until July) over 2020. GlobalData’s Filing Analytics platform identified that Amazon was looking at implementing new initiatives in July 2021 to garner more small and medium businesses (SMBs) to its platform to strengthen its direct-to-customer approach. The company is now developing a new point-of-sale (POS) system.
FedEx continues to lock horns with Amazon by entering into a partnership with Salesforce to boost e-commerce sales. E-commerce and ESG are key themes in FedEx’s 2021 filings. Despite FedEx’s air fleet strength, ‘Fleet’ related keywords have gained mentions in Amazon’s 2021 filings compared to 2020, with news of Amazon looking at bolstering its air network.
Pereira concludes: “Amazon’s drive for innovative offerings such as POS software, cashierless stores and payment technologies is fuelling positive sentiments. With Amazon using its resources to continue to disrupt the industry, it will be interesting to see if firms like Shopify can hold their own against Amazon, particularly seeing as Shopify has partnered with TikTok and Facebook, which will provide influencer-driven sales.”
* Quarter for release of earnings transcript and not company specific fiscal quarter
** Shipping, storage, and packaging service provided by Amazon to sellers