Η COVID-19 pandemic has a big impact on most people both personally and professionally. Many are facing strong economic consequences. However, the Amazon is one of them exceptions, as it saw its profits increase significantly this period. Specifically, his giant E-commerce posted on 29 April the earnings report for first quarter (Q1) of 2021. This report gives us a clear picture of Amazon's success in the pandemic. Amazon's profits tripled in Q1 2021 as the pandemic continued to boost its online retail, cloud and advertising businesses.
The space January - March 2021, his company Jeff Bezos (of the richest man in the world) he said net income of $ 8,1 billion - increase by 224% from the same period of the previous year, "Crushing" the forecast of Wall Street analysts for $ 4,98 billion. The profits reached $ 15,79 per share. This increases the total pandemic profits at $ 26,9 billion. As the MarketWatch, that's three times Amazon's revenue over the past three years.
The company also doubled its profits from the first quarter of 2020, when it reported net revenue of $ 2,5 billion.
Amazon executives said the company's customers made purchases "more frequently and in more categories during the pandemic." The company has also added 50 million Prime members in the last year, - out of a total of 200 million members - of which annual subscription of $ 120 definitely helps her bottom line. Its cloud business, AWS, has also grown and its international retail operations have been profitable for the first time since 2016.
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According to a report by Facebook and Small Business Roundtable, 22% of small and medium-sized enterprises in the US closed in February.
In addition, a new report from Small Business Administration The U.S. reported that the number of people who were self-employed and working was 20% lower in April 2020 than in April 2019, with Asians, people of color and Hispanics being hit hardest. Reconstruction is slow and the current number of self-employed is still 3,6% lower than before the pandemic.
Amazon often says it supports small and medium-sized businesses by allowing them to reach customers through its marketplace. Again, Amazon reduces these sales or even copies products from independent vendors when they happen to be successful. As people slowly return to normalcy, Amazon's profits are unlikely to "escape" the attention of regulators.