Amazon posts biggest profit ever at the height of the Covid-19 pandemic in U.S.

• 2020-08-01
• News

Amazon posts biggest profit ever at the height of the Covid-19 pandemic in U.S.

Amazon has posted the biggest profit in its 26-year history. The company's online sales and lucrative business in support of third-party merchants have increased during the Coronavirus pandemic.

Shares of Amazon, the world's largest online retailer, rose 5 %.

While traditional retailers have been forced to close their stores due to government-imposed lockdowns, Amazon has hired 175,000 people in recent months and demand for its services has increased. Amazon said revenue was up 40% from last year to $ 88.9 billion.

Amazon had predicted that it might not be profitable in the second quarter of this year, as it would have to spend about $ 4 billion on protective equipment for its staff and other expenses related to Covid-19. Amazon did that, but it still made $ 5.3 billion, more than double its net income last year.

Jeff Bezos, who started Amazon in July 1994 and is now the richest man in the world, said in a statement that the second quarter of this year was another highly unusual quarter.

Amazon shares have risen 60% this year, adding to the wealth of Bezos, its biggest shareholder.

Online sales jumped 45% in the second quarter of this year to $ 45.9 billion.

Amazon's other services are also in high demand as companies switched to virtual offices during the pandemic. Amazon Web Services (AWS) revenue grew 29% to $ 10.81 billion.

Amazon's operating profit in international business has also increased, largely due to rising customer spending in Europe and Japan during the pandemic.

The company forecasts net sales of $ 87 billion to $ 93 billion for the third quarter.