Tech

Amazon’s quarterly profit jumps to $ 7.8 billion.

Amazon followed the trend among the country’s largest tech companies on Thursday. According to the company, revenue in the last quarter has increased significantly compared to last year.

According to the company, sales for the three months to June reached $ 113.1 billion, up 27% year-on-year, when the blockade was the most extreme. Profit was $ 7.8 billion, an increase of 48% from $ 5.2 billion in the previous year.

The results show that even after the heyday of the pandemic, many people continue to shop online, and many of them continue to follow the Amazon path. Other biggest tech companies, Apple, Facebook, Google and Microsoft, are also reporting blockbuster results this week.

But Brian Orsavsky, The company’s chief financial officer said in a phone call with reporters that online sales growth slowed as more people were shopping directly with more people and spending their time on vacations and socializing. “That’s all good, but it tends to lead them to do other things than the store,” he said.

Amazon stocks fell more than 7% in aftermarket trading as investors expected further sales growth and a brighter outlook for the next quarter. Amazon is valued at about $ 1.8 trillion, more than double the value before the pandemic.

Amazon’s profits exceeded investor expectations as Amazon’s most profitable businesses continued to thrive. Its cloud computing sector is now larger than most companies, and Morgan Stanley estimates it’s worth $ 600 billion, and growth continues to be strong. Cloud computing revenue was up 37% to $ 14.8 billion. The company’s “Other” business segment, which is primarily advertising, grew 87% to $ 7.9 billion. In the consumer business, Amazon charged $ 25 billion in total revenue from commissions charged to marketplace sellers.

Subscriptions, primarily Prime membership, brought $ 7.9 billion. Currently, about 200 million people are Prime members, and according to a recent analysis by Consumer Intelligence Research Partners, Amazon shop on average 27 times a year, almost twice as often as non-Prime customers. ..

In the construction boom to expand its fulfillment and delivery network, the company has added an additional 64,000 workers over the past three months and currently employs more than 1.3 million. This is 52% more than this time last year. In the highly competitive labor market, Amazon has raised wages. This is what Orsavsky calls “one of the bigger factors of inflation in our business today.” He said the company plans to open many new facilities in the coming months for the holiday shopping season.

Comparing Amazon’s performance to last year’s performance is a bit difficult this quarter.Last year, the company subsequently saw a significant surge in sales. Staff coordination And the other part of the business to better meet the pandemic-fueled demand. But again this year, Amazon’s Prime Day Deal event took place in June instead of October, further boosting revenue this quarter. JP Morgan estimates that this year’s event will generate sales of approximately $ 8.4 billion.

Amazon’s quarterly profit jumps to $ 7.8 billion.

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