Amazon Generating Unusually High Profits Amidst Pandemic

It’s not a secret that world’s leading e-retailer Amazon Inc. (AMZN) has been reaping big from the pandemic in terms of sales. Well, it seems the good fortunes for the company are just getting better with each passing day.

Amazon has posted its results for the second quarter of the year ended June 30, where it recorded its highest ever quarterly profits since its establishment 26 years ago.

In the magnificent second quarter, Amazon posted revenue of $88.9 billion denoting a 40% increase. Net income for the company in the quarter stood at $5.2 billion and earnings per share of $10.3.

The results are on a much higher side compared to the revenue of $63.4 billion, net income of $2.6 billion and earnings per share of $5.22 the company posted a year earlier in a similar quarter.

Earlier the company seemed to be expecting to lose over $4 billion in the quarter on protective gear for staff members and other expenses linked to the deadly coronavirus disease. Well, the company still used the amount as it had anticipated and still posted the strong results.

Since the pandemic set foot, most brick-and-motor retailers have had to close down at some point due to government imposed restrictions to curb spread of the virus. On the other hand, Amazon hired over 175,000 workers in recent months to address the issue of spiking online orders at the company.

Looking forward, Amazon is now expecting to generate revenue of between $87 billion to $93 billion in the current third quarter of the year. Analysts are expecting the company’s revenue in the third quarter to be $86.34 billion.

The company’s founder Jeff Bezos said this was another highly unusual quarter.

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