Amazon profit falls as COVID-19 pandemic-related costs rise
Amazons profit fell 29 per cent in the first quarter as its costs for shipping millions of packages to home-bound customers rose.
Amazon's profit fell 29 per cent in the first quarter as its costs for shipping millions of packages to home-bound customers rose. But the online retail behemoth said its sales soared as more people opt to shop online during the coronavirus pandemic.
Amazon founder and CEO Jeff Bezos said the company will likely spend at least $4 billion during the second quarter in order to speed up delivery times and buy masks and other protection equipment for workers in its warehouses and Whole Foods supermarkets. Shares of Amazon.Com Inc. Fell about 5% in after-hours trading Thursday following the release of the earnings report.
See Zee Business live TV streaming below:
The Seattle-based company reported net income of $2.54 billion in the first quarter, compared with $3.56 billion a year ago. Earnings per share came to $5.01, below the $6.23 analysts expected, according to FactSet.
Revenue rose 26 pe cent to $75.5 billion, beating expectations of $73.7 billion.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.