On Wednesday, Coronovirus and CEO Jeff Bezos warned Congress to disengage Amazon after weakening the company’s leadership position in front of Congress, with Amazon going ahead to make a massive profit in the second quarter.
The company recorded a profit of $ 5.2 billion, or $ 10.30 per share, on Thursday – an all-time record – and double last year’s total. He also came after the record companyDuring the quarter in coronovirus response to the safety of its workers and customers. Finance chief Brian Olasavsky said that another $ 2 billion would be spent in the current, third quarter.
Revenue increased by 40%, the highest increase in two years. According to Yahoo Finance, analysts were expecting earnings of $ 1.46 and revenue of $ 81.5 billion.
Shares jumped 5% after hours.
Olasavsky said the unexpected air flow came from Amazon that was able to ship more than expected, as well as what type of goods consumers were buying. At the onset of the epidemic, shoppers focused on low-profit items such as toilet paper, masks, and groceries, so Amazon was also expecting a breakdown on these sales due to its increased coronavirus costs. Instead, too many profitable goods started selling, resulting in too much money hitting the bottom line. Amazon Web Services and the advertising business also had strong results, he said.
Olasavsky said that prime one-day and two-day shipping times, which have been delayed for months during the viral outbreak, are improving, but he had no time when shipping times were normal.
On Thursday, an analyst said, “We have seen one-day and two-day recoveries during the quarter,” but it is still quite low.
He also saidFor the fourth quarter of this year. The company previously only confirmed that the sales incident was delayed amid the epidemic.
Amazon, already the king of American e-commerce, is poised to become even more effective after the coronovirus epidemic, which has forced more people to shop online. Amazon already has 38% of US online sales. Signs of the massive growth of e-commerce are appearing in a big way this income season, with PayPal reporting an increase in digital payments on its network, with e-commerce equipment providers selling online to more retailers Features take advantage of postings, and UPS reports a spike. Residential Shipment.
Amazon was expected to be widely influential as sales increased, and this is shown in Amazon’s rising stock price., The world’s richest person and Amazon’s largest shareholder, added $ 65 billion to its hefty wealth this year, totaling $ 180 billion.
While most corporate CEOs will be ridiculously happy with this rosy picture, there is cause for concern for Bezos. He was called a day before the CongressBoth Republican and Democratic lawmakers accused Amazon and other Big Tech companies of monopoly practices. Bezos defended his company by saying that it accounts for less than 1% of the global retail industry, a statistic that has a large impact on e-commerce and includes categories that compete in it Does not do. Rep. David Sicileen, president of the Antitrust Subcommittee, said some of these corporations needed to be disbanded and all would have to be regulated.
Additionally, Amazon’s growth during Coronavirus has been far from easy. The e-commerce giant faced major delays in its shipping times during the epidemic after training generations of customers to expect two-day shipments. In addition, it has to deal with shortages of product, pricing on its market and repeated protests by its warehouse workers for better protection from viruses.
Those stumbles have provided a start for rivals such as Target and Walmart, resulting in Amazon losing market share in recent months.
Some of these problems have been mitigated, with gear available for widely available warehouse employees, but Amazon still faces months of shipping delays in crisis. During the company’s last quarterly report, Bezos warned of heavy spending to protect workers and customers from the virus, saying that $ 600 million was spent in the first quarter and $ 4 billion would be spent in the second quarter.
Profit in e-commerce is also proving to be a zero-sum game. According to eMarketer, US online sales are projected to increase by 23% in the second quarter, with brick-and-mortar sales up 24%. Jessie Penny, Neiman Marcus and J. Another wave of bankruptcy claims arose from the crew, which included a number of traditional retailers, including RadioShake and Toy RR.
With that, Amazon’s huge income report comes on the same day that the federal government reported a massive slump for the economy and more than 1.4 million weekly unemployment claims in the previous quarter.
Amazon predicts that sales will continue to grow strongly in the third quarter, anticipating 24% to 33% growth.
Shipping costs rose 68% from a year earlier, a steep increase from the prior quarters, and an employee increase of 34% during the quarter a year earlier. The company said on Thursday that its combined number of regular and seasonal employees now exceeds 1 million.