Strong consumer demand during last week's big shopping weekend could be a huge relief for Amazon (NASDAQ: AMZN) investors. The online retail giant saw its inventory levels explode last year after it expanded its fulfillment network and stocked its warehouses full of KitchenAid mixers, iPads, and all the trinkets people love to buy on Amazon.com. Amazon was already showing signs of an improving inventory picture this summer.
Amazon (NASDAQ: AMZN) has had a tough year. The e-commerce and cloud computing giant has reported quarter after quarter of declines in operating income. The e-commerce and cloud computing services markets are forecast to grow in the double digits this decade.
After years of unbridled growth, e-commerce tools purveyor Shopify (NYSE: SHOP) was hit by a perfect storm. Each of these factors weighed on Shopify, which shed as much as 85% of its value since late last year. Late last week, Shopify reported an encouraging start to the holiday shopping season.