Amazon Performs Better Than Predicted, As Pandemic Shopping Continues
Amazon has reported a huge first quarter, as revenue jumps 44 per cent to US$108.5 billion.
The leap defies Wall Street forecasts that tipped the company’s growth would slow once pre-pandemic shopping patterns returned.
Amazon has made a bullish projection for the current quarter, saying that sales will be in the range of US$110-116 billion. Bloomberg analytics estimate slightly more modest sales of US$108.4 billion for the April-June quarter.
Amazon are banking on their shopping spree bonanza Amazon Prime Day, which will take place in the second quarter, to bolster the April-June earnings. Given that Amazon Prime members have leaped from 150 million subs at the start of 2020, to over 200 million, is a sure sign that this will be the most profitable Amazon Prime Day to date.
Adding to Amazon’s victory lap are the rise of its cloud offering Amazon Web Services, which jumped 32 per cent year on year to US$13.5 billion, and their advertising revenue, which was up 77 per cent to US$6.9 billion.