Amazon Posts Biggest Ever Profits In Its History

Even as theCoronavirus pandemichas forced most companies to accept losses or turn less than expected profits, Amazon seems to be the exception to that rule. The online retailer has posted its biggest ever profit in 26 years. As a result, the company’s shares also rose by 5 percent after hours.

In its Q2 2020 earnings call, the ecommerce giant said that ithired 175,000 employeesin recent months due to surging demand for its services as people turned to online shopping more than ever during the pandemic.Amazon also said that it saw revenue increase by 40% year over year, to $88.9 billion.

Amazon itself had forecast that it might lose money in Q2 because it will spend close to $4 billion on purchasing protective equipment for its staff, and in expenses related to the Coronavirus. However, the company still managed to double its income year over year to $5.2 billion.

The company saw an increase across all of its services. The company reports thatonline store sales jumped 48 percent to $45.9 billion in Q2 2020. There was a52 percent increase in seller services revenue and 41 percent jump in revenue from ads.AWS also saw its revenue jump by 29 percent to $10.81 billion.

For Q3 2020,Amazon is forecasting net sales somewhere between $87 billion to $93 billion.That’s higher than analyst estimates of $86.34 billion. This is likely based on multiple factors, including the fact that Prime Day sales should bring in big numbers for Amazon. While the company haspushed Prime Dayto Q4 in other countries, the sale is still beingheld in India in August, which should add to Amazon’s revenue for Q3. Moreover, Amazon says that“What we saw in Q2 was not only did the mix start to shift back to a more normal mix”and“we also were able to ship a lot more than we had originally thought.”Clearly, the company expects that trend to continue going into Q3, which should also help increase its revenue margins this quarter.

Akshay Gangwar

Greetings, tech titans and fellow literary time-travelers! I’m Akshay, your tech-whisperer and Harry Potter’s number one stalker – seriously, don’t ask me how many times I’ve read those books; it’s borderline unhealthy.

Working in the tech journalism industry since 2016, I have 7 years of experience covering everything from technology news, to well-researched resource articles. Now the Content Strategist at Beebom, I often pen down op-eds for our website, sharing expert commentary on the latest in technology, AI, and electric cars.

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