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Nov 4, 2020 at 7:39 AMIndustry Continues on Recovery Path Despite Corona Crisis
Nov 5, 2020 at 7:10 AMThe online retail giant Amazon continues to be on a successful path during the Corona pandemic. The US company reports another record quarter and anticipates an ‘unprecedented’ Christmas season in 2020.
(Seattle, USA) – The trend towards online shopping is helping the world’s largest online retailer, Amazon, to achieve impressive business results during the Corona crisis. In the third quarter, revenue rose by 37 percent compared to the same period last year to 96.1 billion US dollars (82.3 billion euros), as the company announced on Thursday after the US stock market closed in Seattle. The profit even tripled to a record value of 6.3 billion dollars.
“We are seeing more customers than ever before shopping for gifts early,” explained Amazon CEO Jeff Bezos. This is an indication that an ‘unprecedented’ Christmas season is ahead. Amazon projected revenues for the current quarter between 112 and 121 billion dollars, which would correspond to a growth of between 28 and 38 percent year-on-year. It would be the first time the company surpasses the revenue mark of 100 billion dollars.
Forecasts Significantly Exceeded
Amazon had already benefited significantly from its delivery services in previous quarters, as the demand for online orders surged during the pandemic. Overall, the quarterly figures clearly exceeded the forecasts of Wall Street analysts; however, investors initially reacted cautiously, causing the stock to turn negative in after-hours trading. Nevertheless, the stock price has already risen by more than 70 percent since the beginning of the year.
Amazon’s lucrative cloud business with IT services and online storage also continued to thrive. The AWS platform, used by many companies and apps, increased its revenue by 29 percent to 11.6 billion dollars. While the growth remained at the level of the previous quarter, it met expectations. Meanwhile, operating income rose by 56 percent to 3.5 billion dollars, further underscoring what an attractive profit center Amazon’s cloud flagship is.
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