Amazon Earned Over P500,000 Per Second During the First Three Months of 2020
Amazon, the ecommerce and tech behemoth, reported net sales of about $75.5 billion (about P3.8 trillion) during the first three months of 2020.
That translates to earnings of almost $10,000 (about P500,000) every second during that period, according to calculations made by a portfolio manager in a report by CBS News.
"The numbers are frankly staggering," said Christopher Rossbach of J. Stern & Co. World Stars Global Equity fund.
The revenue amount is up 26 percent from $59.7 billion during the same period last year. The fact that more consumers are still on lockdown because of the coronavirus pandemic and are going online more no doubt help the company achieve the sales record.
“From online shopping to AWS to Prime Video and Fire TV, the current crisis is demonstrating the adaptability and durability of Amazon’s business as never before, but it’s also the hardest time we’ve ever faced,” Jeff Bezos, Amazon founder and CEO, said in the earnings news release.
The company also reported a decrease in its operating income ($4 billion versus $4.4 billion in 2019) and net income ($2.5 billion versus $3.6 billion) during the first quarter of 2020. Bezos said the company is ready to spend more in order to face the unique challenges brought about by COVID-19.
“Under normal circumstances, in this coming Q2, we’d expect to make some $4 billion or more in operating profit. But these aren’t normal circumstances,” Bezos said. “Instead, we expect to spend the entirety of that $4 billion, and perhaps a bit more, on COVID-related expenses getting products to customers and keeping employees safe. This includes investments in personal protective equipment, enhanced cleaning of our facilities, less efficient process paths that better allow for effective social distancing, higher wages for hourly teams, and hundreds of millions to develop our own COVID-19 testing capabilities.”
As a tech company, Amazon has bucked the trend of businesses forced to shut down and losing money in the wake of the coronavirus pandemic. More people staying indoors means more activities online like shopping and video streaming, which are all in Amazon’s wheelhouse.
Rossbach said this can only be good for Amazon’s business in the future.
"The crisis will hopefully be short-lived, but the impact on Amazon could be profound over the long term, with over 150 [million] Prime members now active,” he said. “Habits will form, and many of these people will shop more using Amazon in the future."