Amazon Released First Quarter Earnings, “Take a Seat” said Amazon
The first quarter of 2020 has been a rough ride not just for Amazon but for the businesses but categorizing and saying that all businesses are having their worst time will not be fair. So, let’s just say most of them are having a tough time during this coronavirus pandemic season. People are not getting out of the houses which prohibits them from making expenditure which in turn converts into the company’s income. So, the earnings that they will come out with after the first quarter will definitely be substantially less than their previous records.
The same is happening in Wall Street right now, as the first quarter has ended, many companies are coming out with surprisingly lower earnings this quarter. Amazon has also taken a toll due to this and reported its first-quarter earnings after the bell on Thursday. The stock fell about 5% after the closing bell.
While talking about the quarter one profits, Amazon said in a press conference, that the stock owners must be ready to see the impact of the pandemic lockdown. “If you’re a shareowner in Amazon, you may want to take a seat, because we’re not thinking small,” Amazon said in the press release. “Under normal circumstances, in this coming Q2, we’d expect to make some $4 billion or more in operating profit. But these aren’t normal circumstances.”
This may come as a surprise for some people because recently Amazon announced that all the earnings that they will earn in the first quarter will be completed dedicated to tackling the coronavirus pandemic in the second quarter. Touch-Free shopping has been proved very crucial at this time.
“We’re not sure how far we will get in the relevant timeframe, but we think it’s worth trying, and we stand ready to share anything we learn,” said Amazon In the release. They have also recently been in news for firing a few employees over protesting.
Amazon reported the earning per share (EPS) $5.01, Revenue $75.45 Billion, and Amazon Web services revenue to $10.22 billion. Amazon Brian Olsavsky said that in 2020 Amazon is expected to spend over 1 billion dollars on covid-19 testing and they have designated a complete task force for this goal.