Amazon sales and profits exploded thanks to Covid-19

Tram Ho

Amazon’s revenue and profits surged in the third quarter, as consumers increased their online shopping during the Covid-19 pandemic.

The business results report released by Amazon on October 29 shows that the world’s largest e-commerce firm’s revenue increased 37% over the same period last year, reaching $ 96.1 billion. Profits increased by 197%, reaching 6.3 billion USD. These figures are far from the expectations of analysts.

 Doanh thu và lợi nhuận Amazon bùng nổ nhờ Covid-19 - Ảnh 1.

Revenue from Amazon’s online stores, which includes products like Alexa and items Amazon sells directly to customers through its website, grew 38%. Revenue from third-party stores selling products on the Amazon website increased 55%.

Revenue from Amazon Web Services, the cloud services division and currently the top profit driver, increased 29%. Revenue from advertising increased 51%.

By contrast, Amazon’s physical store revenue, which includes retail food chain Whole Foods, fell 10%.

“Without a doubt, Amazon’s latest business results show that the company continues to benefit from the disruption caused by the pandemic,” said Neil Saunders at GlobalData Retail in a report. CNN Business page quoted.

Amazon expects revenue to reach around $ 112-121 billion in the fourth quarter, and operating profit to reach $ 1-4.5 billion after subtracting about $ 4 billion in costs related to Covid-19 translation.

Amazon shares fell nearly 1% during overtime on Thursday. Before that, the stock had risen more than 70% ytd.

Amazon has strengthened its position during the plague, by attracting Prime members to use the service more often and increasing the number of new ones. Prime members are higher earners, less affected by disease unemployment. Not allowed to travel and participate in other entertainment activities, Prime members shift their spending to electronics, kitchen equipment …

Amazon’s impressive revenue growth comes as it, like other major US tech companies including Facebook, Google and Apple, is facing congressional scrutiny. this country because of monopoly concerns.

Earlier this month, a US House of Representatives committee released a report saying “Amazon has engaged in anticompetitive practices in its treatment of third-party sellers” and tactics to block competition. Amazon has denied these allegations.

Share the news now

Source : Genk