Amazon is expected to continue reaping benefits from the online shopping boom even beyond the pandemic, as its sales and profits soared in the first quarter of the year.
Amazon was the last among the tech giants of Wall Street to publish its first quarter earnings, which showed the company’s performance since the beginning of the pandemic around one year ago. According to the quarterly report, Amazon’s revenue soared 44% to approximately $108.5 billion, as international sales outpaced those in North America. In the meantime, the company’s net income tripled from $2.5 billion in 2020 to $8.1 billion last quarter.
Although a number of countries are beginning to ease restrictions and allowing brick-and-mortar businesses to reopen for physical shopping, Amazon believes the online shopping habits that boomed during the pandemic are here to stay. The e-commerce company anticipates its sales will increase by approximately 30%, to anywhere between $110 billion and $116 billion in the second quarter.
Aside from retail, another contributing factor to Amazon’s rapid growth has been its streaming service, Prime Video. With millions of people stuck at home during Covid-19 stay-at-home orders, streaming hours surged by more than 70% from year-ago levels, revealed the company’s outgoing CEO, Jeff Bezos. Moreover, Amazon’s cloud-computing platform, Amazon Web Services, has turned into a $54 billion “annual sales run rate business,” Bezos added.
One day before announcing its jaw-dropping profits, Amazon promised to increase wages for half a million of its employees. Bezos, whose fortune has skyrocketed amid the pandemic and is now valued at $204 billion, vowed to also improve working conditions at the company’s warehouses, after reports surfaced of the company failing to protect its workers from Covid-19, and not giving them enough time for a break.
Information for this briefing was found via Amazon. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.