Do You Know Profits Of Tech Giant Hit An All Time High In First Quarter?
Strong increase in online product demand
Amazon’s profit in the first three months of 2021 came in at $8.1billion – more than triple what it was in the same period last year.
The online marketplace is among the businesses that have thrived during the various government lockdowns aimed at limiting the spread of the coronavirus.
As many millions of people were forced to stay in their homes, Amazon was relied on for the delivery of supplies.
Since the pandemic began, the business has posted four consecutive record quarterly profits and attracted more than 200 million Prime subscribers. It has required to recruit more than 500,000 employees to keep up with the demand.
Revenue was up 44% to $108.5 billion. So Amazon is one of just four US companies to have reported quarter revenue above $100 billion. The others are Apple, Exxon Mobil and Walmart.
Strong increase in demand for remote computing
The pandemic’s shift to remote computing was also a boon to Amazon’s profitable cloud computing business, Amazon Web Services, which had $13.5 billion in sales.
“We certainly had strong volumes really across all of our businesses,” Amazon’s finance chief, Brian Olsavsky, said on a call with reporters. He said the company is investing heavily in future growth. It spent almost $50 billion in capital expenditures in the last 12 months, largely on building out its logistics operations and data centers, up 80 percent over a year earlier. Mr. Olsavsky said he expected “another strong year” for capital spending.
“In just 15 years, AWS has become a $54 billion annual sales run rate business competing against the world’s largest technology companies, and its growth is accelerating,” said Jeff Bezos. Mr. Bezos plans to step down as chief executive later this year and transition into the role of executive chairman.
Amazon’s total work force dipped slightly between December and the end of March, falling by 27,000 to 1,271,000 employees globally. That was still 51 percent more workers than the same period last year. On Wednesday, Amazon announced it would increase pay for half a million workers and was hiring “tens of thousands” more.
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