Fact of the Day 1

Share this post

Tailwind or Headwind?

www.factoftheday1.com

Discover more from Fact of the Day 1

My journey as a startup founder
Over 38,000 subscribers
Continue reading
Sign in

Tailwind or Headwind?

Source: Money, StackExchange Published: June 2012

Danny Sheridan
Jan 23, 2020
Share this post

Tailwind or Headwind?

www.factoftheday1.com
Share

Source: Money, StackExchange
Published: June 2012

Tailwind or Headwind?

Circulated: November 19, 2019

Originally a nautical term, the terms are today financial jargon. If the wind is at your back, a tailwind, that will help you move forward more quickly. If you are moving into a headwind, that will only make progress more difficult.

Tailwinds: a situation that makes growth less difficult.
Example: Falling fuel prices will reduce Amazon Air costs and increase profitability.

Headwinds: a situation that makes growth more difficult.
Example: An increase in the price of fish will cause Amazon Meal Kit’s salmon entree to be less profitable.

“The Japan consumption tax was raised from 8% to 10% on October 1st. We expect our [international growth rate] to be a negative headwind of 300 basis points year-over-year in Q4 2019.”

- Brian Olsavsky, SVP & CFO @ Amazon during the Amazon’s Q3 2019 Earnings Call in October 2019.

Share this post

Tailwind or Headwind?

www.factoftheday1.com
Share
Comments
Top
New
Community

No posts

Ready for more?

© 2023 Fact of the Day 1
Privacy ∙ Terms ∙ Collection notice
Start WritingGet the app
Substack is the home for great writing