Coronavirus | Amazon Q1 profit drops 29% despite revenue surge


Amazon said on Thursday profits took a hit in the past quarter due to the global pandemic and that its earnings in current period would be wiped out by COVID-19 related expenses.

The technology and e-commerce giant said its revenues surged 26% in the quarter to more than $75 billion as people hunkered down at home due to the pandemic turned to it for supplies and entertainment.

But profits slipped 29% from a year ago to $2.5 billion.


Chief executive Jeff Bezos said all profits in the April-June quarter would be erased by expenses linked to the global virus outbreak.

“In this coming Q2, we’d expect to make some $4 billion or more in operating profit,” Bezos said.

“But these aren’t normal circumstances. Instead, we expect to spend the entirety of that $4 billion, and perhaps a bit more, on COVID-related expenses getting products to customers and keeping employees safe.”

Shares in the Seattle-based company slipped some five percent in after-hours trades that followed release of the earnings report.


You have reached your limit for free articles this month.

Register to The Hindu for free and get unlimited access for 30 days.

Subscription Benefits Include

Today’s Paper

Find mobile-friendly version of articles from the day’s newspaper in one easy-to-read list.

Unlimited Access

Enjoy reading as many articles as you wish without any limitations.

Personalised recommendations

A select list of articles that match your interests and tastes.

Faster pages

Move smoothly between articles as our pages load instantly.


A one-stop-shop for seeing the latest updates, and managing your preferences.


We brief you on the latest and most important developments, three times a day.

Not convinced? Know why you should pay for news.

*Our Digital Subscription plans do not currently include the e-paper ,crossword, iPhone, iPad mobile applications and print. Our plans enhance your reading experience.


Source link

Leave a Reply

Your email address will not be published. Required fields are marked *