Saturday, 5 December 2020

Amazon quarterly profit rockets tenfold to $2.9bn

Reuters

SAN FRANCISCO: Amazon reported that its profit in the recently-ended quarter rocketed to $2.9 billion in a ten-fold increase from the same period last year.

Net sales at the e-commerce colossus climbed to $56.6 billion in the third quarter, a 29 percent increase from the $43.7 in sales reported in the third quarter in 2017.

However, analysts had expected an even stronger performance by Amazon, prompting shares to sink 8.8 percent to $1,642.97 in after market trades that followed release of the earnings figures.

The Seattle-based company touted the growing popularity of Amazon Business, a service tailored as a source of all kinds of equipment and supplies for companies.

“Amazon Business has now reached a $10 billion annual sales run rate and is serving millions of private and public-sector organizations in eight countries,” Amazon founder and chief executive Jeff Bezos said in a statement released with the earnings.

“And we’re not slowing down — Amazon Business is adding customers rapidly, including large educational institutions, local governments and more than half of the Fortune 100.”

Meanwhile, operating income from the Amazon Web Service cloud platform climbed to $2.1 billion, nearly double that in the same quarter last year.

Amazon — which offers online shoppers a combination of ease, speedy delivery and choice that few can match — has faced criticism of its labor practices, including grueling working conditions and lack of job security.

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