All through the pandemic, Amazon had no trouble generating huge profits. After the Covid-19 pandemic passes, it’s in great shape to make even more returns.
Amazon’s profits more than doubled to $8.2 billion in the first four months of 2021. Shares that are at an all-time high are up 3% in premarket trading.
“Amazon has the perfect business for the globe right now,” said the chief strategy manager at Mindshare Worldwide, James Harris. “Internationally leading e-commerce platform, a smaller but growing advertising capability and a growing cloud business all working in unison.”
A detailed look at the data reinforces his point.
Demand for e-commerce doesn’t appear to be slowing, with the sale from Amazon’s consumer business growing 39% in the United States last year and 55% internationally.
Amazon has more than 250 million paying subscribers to its OTT and Prime service worldwide.
Amazon Web Services, which offers cloud computing services, recorded net sales of $13.7 billion during four months, up 34% year after year.
“During the pandemic, we’ve seen many firms decide that they no longer want to oversee their technology infrastructure,” Brian Olsavsky, the Chief Financial Officer, said in an interview on Thursday. “We hope this trend to continue as we recover from the pandemic.”
Revenue from advertisements is increasing, too, as ads try to target people who spend more time online. According to USA Today, the firm’s share of the US digital advertisement market exceeded 10% in 2020.
That’s all good news for Jeff Bezos, Amazon’s CEO, who is once again the world’s wealthiest man with a net worth of $200 billion. Amazon was the last tech giant to report profits for the beginning of 2021. Together, Apple, Facebook, Google, Amazon and Microsoft earned about $75 billion during the first quarter of 2020.
