As pandemic forced everyone to sit at home,it brought opportunity for Amazon. Sales have spiked, as people are turning online for various products.
Jeff Bezos’ Amazon got a rare chance to keep open its business, when many businesses were shut down.
Second-quarter revenue jumped 40% from a year earlier to $88.9 billion.Revenue in the current quarter will range from $87 billion to $93 billion with operating income of $2 billion to $5 billion. Analysts have estimated operating profit of $3.04 billion on sales of $86.5 billion.
Those expenses will start going away once Covid is behind us, which shows us the huge earnings potential of this model.
As the expenses on Amazon has increased during Covid pandemic, Brian Yarbrough, an analyst at Edward D. Jones & Co.
Demand of groceries has hiked on the online platform, however demand for online products have seen a slump.
Amazon has increased pay of its workforce, also ensuring the proper safety measures of especially warehouse workers, who have to deliver the products here and there. Amazon has increased its workforce 34% to 876,800 full- and part-time employees at the end of the quarter.