This Monday the shares of the retail giant fell 1.8%, following a report by the Wall Street Journal that the e-commerce giant adjusted its product search results to emphasize items that are more profitable for the company. According to Bloomberg, following an internal debate, Amazon changed in the past year its secret algorithm, which ranks search results to highlight more profitable items, a striking departure from the company’s previous focus on customer satisfaction and bestsellers.
Another factor that can make this week difficult for the retailer is the spike in oil prices. According to the Dow Jones Newswires, significant declines in shares of shipping and logistics companies should be expected during this week in response to rising oil prices, after an attack to the heart of Saudi Arabian oil production took place over the weekend.
Refineries and airlines are among those businesses naturally affected by the incident, but companies that depend on the success of their logistics services, such as Amazon, are also suffering, which is perhaps not so obvious. According to CNBC, US oil futures jumped 14.7%, settling at $ 62.90 a barrel. It was the biggest spike since January 2009.
In fact, in the US, American Airlines fell 7.28%, Delta Airlines was down 1.57%, United Airlines fell 2.84% and Alaska Air dropped 1.87% on Monday.
In Brazil, airlines also had the biggest casualties of the day in the Ibovespa, the benchmark index of the Brazilian stock market, on Monday. Azul closed with losses of 8.45% at BRL 47 and Gol retreated 7.77% at BRL 32.05.
Fortunately, this Tuesday, Brent crude futures, the international benchmark for oil prices, dropped more than 6% after a report said Saudi Arabia’s oil production will be restored to normal levels, faster than initially expected.