Amazon.com Inc., the largest online retailer, has reported its highest-ever profit at USD 8.1 billion during the first quarter of 2021. The company’s shares saw a 4% hike during the after-hour trading.
The announcement comes as consumers are increasingly using online platforms for their shopping needs while sellers are being paid more for warehousing and advertising.
People have been increasingly relying on Amazon’s home delivery services for groceries and other home staples, since the start of coronavirus pandemic-induced lockdowns.
While physical stores were forced to shut down or reduce working hours, Amazon’s profit trajectory has been on a fast track with four consecutive record quarterly profits. The e-commerce giant recently attracted over 200 million Amazon Prime subscribers and has added over 500,000 employees to its workforce to keep up with the surging demand.
Meanwhile, the company has been facing lawsuits in New York, claiming that it compromised the safety of its workers and prioritized profits during the covid-19 pandemic.
However, Amazon’s operations have been unfazed by these occurrences. Net sales have risen to USD 108.52 billion during the quarter ended March 31, up from USD 75.45 billion, beating analysts’ estimates of USD 104.47 billion.
Chief Executive Officer of Amazon, Jeff Bezos was quoted saying that the company’s cloud computing unit Amazon Web Services is now garnering around USD 54 billion in sales and competing against major industry players while showing considerable growth.
Meanwhile, Amazon’s growing chain of physical outlets, including Amazon-Whole Foods, and its cashier-less convenience shop, has been contributing to the company’s exponential revenue rates. The online retailer has also delved further into healthcare and provided online doctor-consultation services for employers, adding one more profit-making business to its portfolio.
Amazon expects an operating income ranging between USD 4.5 billion and USD 8 billion for the current quarter and has assumed about USD 1.5 billion expenses relating to the Covid-19 pandemic.
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