AmazonThe company will announce third-quarter results after Thursday’s market close.

What analysts expect:

• Earnings 8.92 cents per share according to Refinitiv’s analysts
• Revenue According to Refinitiv analysts, $111.6 billion

Amazon has many problems, such as global supply chain challenges and increasing labor and logistic costs. Amazon also faces difficult comparisons with its finances from last year, which was when the pandemic sparked a boom in ecommerce.

Amazon’s last earnings report included these words: issued conservative sales guidanceFor the current quarter, the results are in line with the company’s hopes that more customers will be returning to shops and spending money on things other than travel.

Amazon expects to report a 16% increase in revenue for its third quarter compared with a year prior. It’s an increase from the previous quarters which saw growth rates of 44% & 27% respectively.

Amazon has increased its container processing capabilities and added new shipping ports worldwide to address supply chain issues. Amazon has also increased the size of its planes and trucks fleets, and made investments to make sure it always has sufficient inventory.

Consultant firm MWPVL InternationalAmazon expects to increase its fulfillment network’s area by 175,000,000 square feet this year. This is 44% more than 2020.

With a wide warehousing, logistics and health network. [third-party]Amazon might be less affected by supply chain constraints than its competitors,” stated Justin Post, Bank of America analyst, and Michael McGovern in their Monday report. They recommend that investors buy the stock. An unusual 4Q will result from out-of-stock items or a shorter shipping window.

Amazon is likely to see an increase in costs related to fulfillment expansion and staffing during the third quarter.

Amazon is offering $3,000 in sign-on bonuses amid a labor shortage. free college tuition This company is looking to bring on270,000 seasonal and permanent employees are available nationwide to help with holiday shopping.

Amazon’s fast-growing cloud computing business continues to be a key driver of its profits. It accounted for over half the operating income during the second quarter. FactSet analysts project that revenue at Amazon Web Services will rise 34% over $15.5 billion a year ago, according to FactSet.

Amazon expects its advertising revenue to rise 53% to $8.3 Billion year-over-year. Recent earnings reports showed that social media companies had a 53% increase in revenue from advertising. Facebook SnapApple’s iOS14.5 privacy changes that allow users to opt out from targeted ads on their devices, saw revenue decline. Amazon’s Ad Business is not like its peers. is expected to beThe strong, direct relationship between consumers and the company has kept them safe from iOS updates.

A drawback to the advertising business is the possibility for sellers or brands to restrict or decrease ad spend because of supply restrictions. Snap last week warnedA pullback in ad spending could be caused by supply chain issues and labor shortages. MicrosoftAmy Hood is chief of finance told analystsThis week, “watch the advertisement market through the quarter”

Amazon shares have increased 6.5% this year, while the S&P 500 has climbed 22%.

WATCH: Watch Jim Cramer’s full interview with AWS CEO Adam Selipsky