The world’s largest online retailer Amazon enjoys greater popularity than ever during the corona crisis. The lockdown caused the Bezos Group’s delivery services to boom, and the cloud business also flourished thanks to home work and high demand for storage space.
In the midst of the corona pandemic, Amazon continued to benefit greatly from the online shopping boom. In the second quarter, sales skyrocketed 40 percent year-on-year to $ 88.9 billion ($ 75.1 billion), the world’s largest online retailer said in Seattle on Thursday after the US stock market closed. The profit was $ 5.2 billion, roughly doubling year-on-year.
The results were significantly higher than the analysts’ forecasts, and the stock initially reacted with strong price increases. The fact that Amazon and its delivery services are among the major beneficiaries of the corona crisis had already been shown in the previous quarter. In addition, the cloud business with IT services and storage space on the net continues to flourish, even though Amazon’s flagship AWS has recently not been able to fully meet the high expectations.
The web platform used by many companies increased sales in the past quarter by 29 percent to $ 10.8 billion, which markedly slowed growth compared to the previous quarter. However, this also corresponds to the longer-term trend. In general, the cloud business also benefits in the pandemic, as increased homework, for example, increases demand. For Amazon, the division is very lucrative because of its high profit margins. In the most recent quarter, operating income was $ 3.4 billion.
Given a hiring offensive and high investments to cope with the rush of customers in the Corona crisis, Amazon’s costs also increased sharply. CEO Jeff Bezos had already announced that. Three months ago, he warned investors: “If you own Amazon shares, you should sit down now, because we don’t think small.” The group was initially somewhat overwhelmed with the high level of activity in the pandemic, so 175,000 additional employees were hired. Amazon is now one of the largest employers in the United States.
For the current third quarter, the company forecast sales of between $ 87 billion and $ 93 billion, which would result in a strong increase of 24 to 33 percent year-on-year. Amazon anticipates operating profit of $ 2.0 billion to $ 5.0 billion. The company had earned $ 3.2 billion in the prior year period. This was also well received on the market: Investors made the stock rise by over five percent after the exchange. With a share price increase of around 65 percent since the beginning of the year, the Bezos Group is one of the biggest winners on the financial market anyway.
- amazon_3: © rcfotostock – stock.adobe.com