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👉 Amazon's Foreign Exchange Headwinds

+$900M more than they were anticipating..

Happy Friday, everyone. 

About a month ago, a few people from Titan reached out asking if we wanted to be guest writers on their weekly newsletter — The Weekly.

Titan has never let anyone guest write their newsletter, so this was a big deal. And considering I’ve been a customer and user since my senior year of college (2018) — I was all for it!

We met with their team in early-October to begin brainstorming ideas and landed on the topic of foreign exchange headwinds — specifically what they are and how they can negatively impact multinational businesses based in the US.

This topic has been mentioned countless times on earnings calls, with Amazon recently stating it negatively impacted their revenue by $900M in Q3.

“As the dollar continued to strengthen during the quarter, the foreign exchange impact was higher than the 390 basis point impact we had incorporated into our Q3 guidance. This represents a headwind of approximately $900 million, more than we initially guided to.”

— Brian Olsavsky, CFO of Amazon

This isn’t me asking you to go become a customer of Titan and begin investing your money with them — that’s not at all what I’m doing here. However, we spent hours writing this piece and we’re incredibly proud of how it turned out.

I consider you all our friends — as a friend, please read it by clicking the button below.

We introduce the concept of foreign currencies, how F/X can dramatically impact the bottom line of businesses, and offer a few takeaways to consider when analyzing multi-national companies.

Then come back to this post and let us know how we did — and if you’d like to begin seeing more articles like this shared to Rate of Return.

For more information about Titan, click here.

Disclaimer: This is not financial advice or recommendation for any investment. The content is for informational purposes only, you should not construe any such information or other material as legal, tax, investment, financial, or other advice.

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