Amazon has made more profit during pandemic than previous 3 years of earnings in total
Last Updated: April 29, 2021 at 4:13 p.m. ET
First Published: April 29, 2021 at 4:07 p.m. ET
By Jeremy C. Owens
Amazon stock jumps more than 5% in after-hours trading after company announces its second consecutive quarter of more than $100 billion in sales, predicts a third on the way
Amazon AMZN, +0.37% reported first-quarter earnings of $8.11 billion Thursday afternoon, trouncing expectations yet again as it continues to provide services greatly needed during the COVID-19 pandemic, namely e-commerce and cloud computing. In the 12 months ending March 31, comprising most of the pandemic’s effects in the U.S. and areas other than China, Amazon collected net income of about $26.9 billion.
That is more than Amazon’s profits from the previous three full years, 2017 through 2019, which totaled roughly $24.7 billion. And those three years were Amazon’s most profitable in its history, after the company focused more on growth than earnings for decades as it built out its warehousing and logistics systems for delivering goods sold on its website as well as its data-center network for Amazon Web Services’ cloud-computing offering.
Amazon reported first-quarter earnings of $15.79 a share, more than triple the $5.01 a share recognized in the same period a year ago, when the COVID-19 pandemic had just started causing shelter-in-place restrictions in the U.S. Sales grew to $108.52 billion from $75.45 billion the year before.
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