Pre-reading questions:
I will read each question. Then, please answer them.
- What are some common strategies companies use to increase their profits?
- How important is it for companies to share their profit increase information with their employees and customers?
Vocabulary:
I will read the words, meanings, and sample sentences. Then, repeat after me.
- profit /PROF-it/
- stock /stok/
- advance /ad-VANS/
- e-commerce /EE-kom-ers /
- segment /SEG-muhnt/
[noun] – the financial gain made after subtracting expenses
The bakery made a good profit this month, allowing them to buy new equipment.
[noun] – shares of a company that can be bought and sold
She decided to buy more stock in the company after seeing its positive performance.
[noun] – a forward movement or progress, particularly in technology or development
The new software represents a significant advance in technology, making tasks much easier for users.
[noun] – the buying and selling of goods or services over the internet
E-commerce has become very popular because it allows people to shop from home.
[noun] – a part or section of something
The marketing team divided their campaign into several segments to target different audiences.
Article reading:
Please read the whole article. Then, I will check your pronunciation and intonation.
On August 1, 2024, Amazon announced a substantial increase in profits for the second quarter, from April to June, reaching $13.5 billion. This amount is much higher than the $6.7 billion earned in the same period last year. Despite this impressive profit, the company’s revenue for the quarter was $148 billion, falling short of the expected $148.67 billion. This shortfall caused Amazon’s stock price to drop by over 6% in after-hours trading.
The earnings per share for Amazon were $1.26, which exceeded the forecast of $1.03. However, the company expects lower revenue for the quarter ending September 30, predicting between $154 billion and $158.5 billion, less than the anticipated $158.22 billion. Amazon has faced higher costs due to increased spending during the pandemic and has reduced costs by laying off over 27,000 employees. Amazon Web Services (AWS) saw a 19% revenue increase, driven by advances in artificial intelligence. The company is also investing more than $30 billion in infrastructure and plans to expand data centers in Saudi Arabia, Mexico, and Mississippi. Nonetheless, the core e-commerce segment grew only 5%, indicating slower growth in North America. Additional challenges include a recall of 400,000 hazardous products and an antitrust lawsuit related to overcharging sellers and restricting competition.
The earnings per share for Amazon were $1.26, which exceeded the forecast of $1.03. However, the company expects lower revenue for the quarter ending September 30, predicting between $154 billion and $158.5 billion, less than the anticipated $158.22 billion. Amazon has faced higher costs due to increased spending during the pandemic and has reduced costs by laying off over 27,000 employees. Amazon Web Services (AWS) saw a 19% revenue increase, driven by advances in artificial intelligence. The company is also investing more than $30 billion in infrastructure and plans to expand data centers in Saudi Arabia, Mexico, and Mississippi. Nonetheless, the core e-commerce segment grew only 5%, indicating slower growth in North America. Additional challenges include a recall of 400,000 hazardous products and an antitrust lawsuit related to overcharging sellers and restricting competition.
Comprehension questions
I will read each question. Then, please answer them based on the article.
- What was Amazon’s profit for the second quarter of 2024?
- How did Amazon’s second-quarter revenue compare to the expected amount?
- What caused Amazon’s stock price to drop after hours?
- What was the earnings per share for Amazon, and how did it compare to the forecast?
- What revenue range does Amazon expect for the quarter ending September 30?
Discussion questions
I will read each question. Then, please answer them.
- Have you ever faced a challenging situation where you felt stranded or isolated? If so, what did you do to overcome it and manage your emotions? If not, what might you do if you were in such a situation?
- Can you think of a time when you or someone you know achieved a significant financial milestone? What strategies or actions led to that success?
- Do you think investing in new technologies is crucial for a company’s success?
- How important is it for companies to have a plan for handling revenue shortfalls or unexpected expenses?
- What do you think are the potential benefits and drawbacks of expanding business operations to new regions?