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The Motley Fool fool.com 02 Aug, 2022 15:15 am

Amazon's Expenses Are Through the Roof: Time to Sell?

Amazon's Expenses Are Through the Roof: Time to Sell?
Amazon invested aggressively in adding capacity to serve surging demand at the pandemic's onset.

However, now that economies are reopening, folks are returning to brick-and-mortar stores for more of their needs, decelerating revenue growth at Amazon.The company is not investing in any new capacity, so it will mitigate the cost pressure if it can sustain revenue growth.The earnings release on July 28 included management's forecast for Q3, which predicted revenue growth between 13% and 17% for Q3.Let's examine Amazon's rising costs and determine if they are enough reason to sell the stock right now.

While Amazon's expense growth is concerning, it is no reason to sell Amazon's stock now.Market participants had been concerned about the alarming rate of increases of Amazon's expenses.

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