Tech

Amazon’s profit execution continues and is supported by sustainable demand

Amazon..

AMZN 0.37%

com Inc. reported record quarterly profits as demand for the distribution, cloud computing, and advertising businesses remained strong, ending the blockbuster season for the world’s largest tech company.

According to Seattle-based Amazon, profits more than tripled to $ 8.1 billion, a quarterly record for e-commerce companies, with January-March sales of $ 108 billion, up 44% from the year-ago quarter. did. Revenues far exceeded the average forecast of $ 105 billion by FactSet polled analysts.

Amazon,

Apple Co., Ltd.

AAPL -0.07%

Facebook Co., Ltd.

FB 7.30%

With google

Microsoft Co., Ltd.

MSFT -0.81%

Everything reports a significant increase in profits and profits, Pandemics help strengthen tech companies And they are increasingly at the center of everyday life around the world.

Apple profits More than doubled to $ 23.6 billion This is due to an increase in sales of new high-priced iPhones as well as Mac computers and iPads. A Soaring digital advertising spending Alphabet Inc, the parent of Facebook and Google.Is Microsoft Quarterly sales up 19% As more customers turn to cloud and video gaming services while at home during the blockade.

Amazon expects April-June sales to reach $ 110 billion to $ 116 billion, which will generate more than $ 100 billion in revenue for the third straight quarter.

Amazon’s share price rose about 3.5% in after-hours trading on Thursday.

Success of tech giants over the past year The company took a leap to new heights after consumers flocked to online shopping during the pandemic blockade. Amazon continues to face challenges from regulators and some employees, but is strengthened by its dominant grip on e-commerce and its continued expansion into new industries.

Amazon’s first quarter is usually slower than the previous year-end results, backed by holiday shopping sales. However, the company has exceeded expectations in recent quarters. Last year, an American who returned home broke the sales record as he turned to delivery services. The company’s stock price rose 76% in 2020.

How does a pandemic affect American retailers? As states across the country struggle to get back into business, the WSJ will investigate the evolving retail industry and how consumers may shop in the post-pandemic world. (Issued on November 16, 2020)

The company said Thursday that it expects an annual Prime Shopping celebration to take place in the second quarter. This event, usually held in the third quarter, is a plunge in sales.

Amazon’s dominance in online retail is comparable to the strength of Amazon Web Services, a business line that lends server capacity and software tools to other companies. AWS is Amazon’s main profit center, but recent growth has slowed as Microsoft and Google cloud units have been aggressive in registering new customers. Cloud Unit sales totaled $ 13.5 billion in the first quarter, up 32% from the year-ago quarter.

AWS CEO Andy Jassy Will be CEO of Amazon Later in the third quarter

Jeff Bezos

Said in February He will leave that role Became chairman.

Amazon Advertising Business I also became a major player In that industry. Rapidly developing units include e-commerce giants Google and Facebook Inc. Competing with our major advertising business. Amazon’s category, which includes advertising revenue, increased 77% from a year ago to $ 6.9 billion in the first quarter.

Coronavirus pandemic Helped Amazon, Facebook, and Google grow even stronger, first collected by tech giants Most of all advertising spending in the US Last year, The Wall Street Journal reported in March.Amazon also said it recently Start streaming NFL Thursday night match until 2023. This is a deal that will increase Amazon’s advertising spend and compete more directly with traditional TV stations.

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Did you order more from Amazon during the pandemic? Why or why not? Join the conversation below.

Investment company analyst John Blackledge said:

Cowen Co., Ltd.

Witnessing the end of the pandemic, Blackledge said investors are eager for Amazon to expand its daily delivery service.

The largest tech company in the United States has recorded tremendous growth Last year, consumers and businesses became dependent on online shopping, software, cloud services, as well as smart devices and video streaming. Amazon, Google, Facebook, Apple and Microsoft’s combined revenues increased one-fifth to $ 1.1 trillion. Their market capitalization surged to about $ 8 trillion by the end of 2020, compared to about $ 5 trillion at the end of 2019.

Amazon’s performance has come as regulators increasingly scrutinize Amazon’s market power. Congress considered changing antitrust law This can make it easier for governments to challenge specific business strategies and practices, or to separate tech giants from specific units.Last year, a parliamentary panel discovered that Amazon had accumulated. “Monopoly power” over the seller I was bullied on that site Retail partner Inappropriate use of seller data to compete with rivals.

Amazon says it is wrong to assume that its success will only come from anti-competitive behavior and is focused on keeping consumer prices low.

The company also faces activities from its employees.It said on wednesday Raising wages for hourly workers, Offers more than 500,000 employees a salary increase of 50 cents to $ 3 per hour.Amazon has announced that wages will rise after workers work in one of the warehouses Voted not to unite In Alabama earlier this month. More than 70% of those who participated in the election refused to union, giving Amazon complete control over how employees are managed and paid, and the expectations of warehouse workers.

Despite the company’s victory at the Alabama facility, Bezos said the company is aiming to improve the way employees are treated.At the end of him Annual letter to shareholders As CEO announced this month, Bezos said Amazon is working to invent a solution to reduce the number of injured in warehouses. He defended the company from criticisms that it mistreated workers.

Write to Sebastian Elera Sebastian.Herrera@wsj.com

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Amazon’s profit execution continues and is supported by sustainable demand

Source link Amazon’s profit execution continues and is supported by sustainable demand

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