We all love online shopping. Especially in this pandemic situation, online services get new growth. In the case of online shopping, the most admirable sites are Amazon, Flipkart, Myntra, etc. Amazon in Asia takes a huge place in online shopping. This is also the most reliable online shopping brand in Asia. Amazon.com, an American multinational technology company, also focuses on cloud computing, digital streaming, e-commerce, and artificial intelligence. Amazon Prime in Asia is a very popular online streaming platform for the entertainment industry. This company is considered as one of the big tech giants along with Google, Apple, and Facebook. Amazon reported earnings for its second fiscal quarter of 2020. This report includes its revenue up 40% to $88.9 billion. The net income of Amazon in 2020 is $5.2 billion and earnings per share are $ 10.30 billion. In 2019, the revenue of Amazon was $63.4 billion and net income was $ 2.6 billion. The earning per share was $ 5.22 billion in the second quarter. These amazing results were anticipated since they encompass Amazon’s first full quarter during the pandemic.
This company not only leads the online retail but also leading in cloud technology also. Amazon’s guidance for Q2 included $ 4.0 billion in costs related to COVID 19. For the third quarter, this company expects another $2.0 billion in costs related to coronavirus. As this company doesn’t want to portray an image of profiting too much in the pandemic. But Amazon creates the history in 6 years by the 5.2 billion quarterly profit. This retail giant easily beat the expectation of analysts. As per the expectation of analyst the revenue report of Amazon should be $81.53 billion with earning per share of 1.46. in regular trading, the company’s stock was up less than 1% and up 5% in after-hours trading. As compared with the analyst’s expectation of $ billion, Amazon provides third-quarter revenue guidance in the range of $87.9 billion and $93.0 billion.
As we all know the CEO of Amazon, Mr. Jeff Bezos, testified during the virtual antitrust hearing. He highlighted the broader impact of Amazon in this COVID 19 pandemic situation including creating job opportunities. He elaborates on the company’s role during the pandemic and the coronavirus’s impact on its bottom line. Mr. Bezos is very proud and grateful to his employees around the globe. They are responsible for this unusual quarter. Amazon spent about $4 billion on incremental COVID 19to keep the employees safe and deliver products to the customers in this time of high demand. Amazon has created over 175000 new job opportunities since March. They try to bring 125000 of these employees into regular and full-time positions. Amazon is following complete safety rules, adding new backup family care benefits, and paying their thanking bonus over $500 million to front line employees and delivery partners. After all of these, it is very obvious that the third-party sale grew faster than the first-party sales in this quarter. Amazon invests over 9 billion in its capital projects including fulfillment, transportation, and AWS.
During this pandemic and high demand for essential commodities, they increased their grocery delivery capacity over 160% and tripled their grocery locations in this quarter. They keep this initiative to help their customers during this pandemic. This company donated $10 million in personal protective equipment because these are the most essential in the crisis time. This personal protective equipment includes 4.4 million masks and thousands of contactless thermometers. Amazon uses the empathy-based business strategy in this pandemic. Amazon Web Service (AWS) passed the $10 billion milestones. The growth becomes slowdown and the growth fell to 29%. The growth rate was falling steadily for the past two years, but the COVID 19 accelerate the AWS growth curve. This is now leading the cloud computing market and beat Microsoft Azure and Google cloud. High percentage growth cannot continue unabated. AWS accounted for about 12 % of Amazon’s total revenue in this quarter.
The subscription service is also at hike due to this pandemic. The services were up to 29% to $ 6.02 billion. The main ringmaster here is Amazon prime with its 150 million paid subscribers. Camp prime and Prime Video are the two main parts of Amazon. Camp prime is in a partnership with the Boys and Girls Clubs of America to keep kids engaged during summer. Prime Video is used only for interaction with people. The ‘other’ category of Amazon covers mainly the company’s advertising business, which was up to 41 % to $ 4.22 billion in revenue. There was obviously some pull back from the advertiser include certain downward pressure on price. Also, Alexa was mentioned many times in the company’s press release. In Q1 company noted that Alexa can now answer tens to thousand questions related to COVID 19.
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