Amazon reaps rewards of pandemic shift online

News

Amazon has reported its second straight quarter of $100bn-plus sales, comfortably beating Wall Street’s targets as it continues to reap the rewards of pandemic conditions.

Net sales of $108.5bn in the first three months of the year helped the company achieve a net income of $8.1bn, up by more than 220 per cent on the same period in 2020.

Almost half of its operating income — $4.2bn — came via its cloud division, AWS, which experienced a continued boost from the shift to homeworking, with year-on-year revenue growth of 32 per cent.

Revenues from company’s advertising business, seen as a big new profit centre, rose 77 per cent year-on-year, to $6.9bn, as Amazon continued to leverage its position as the starting point for millions of daily product searches.

Its stock price rose by about 3 per cent in after-hours trading to a record above $3,590.

In its guidance, Amazon said it expected its elevated sales to continue, even as communities begin to reopen, predicting between $110bn and $116bn in revenue from this current quarter.

The company said it expected net income to come in between $4.5bn and $8.0bn, factoring in $1.5bn in spending related to Covid-19 measures in its logistics network.

Articles You May Like

Crema Finance shuts liquidity protocol on Solana amid hack investigation
Texas Housing Market Report Halfway Through 2022
Ethereum testnet Merge mostly successful — ‘Hiccups will not delay the Merge.’
New York cannabis investment fund focuses on equity
Munis stronger, ignore UST selloff