Whoa

Amazon triples its profit in a record quarter (but it's feeling guilty)

Snacks / Thursday, October 29, 2020

The only one having a good 2020... Amazon brought in record-high sales last quarter, breaking its all-time high from the previous quarter. We lost count of how many fleece sweatpants we 1-click ordered, and Amazon probably would've lost count of how much $$$ it raked it (if it weren't required to report that to the SEC):

  • Profit tripled from the same quarter last year, coming in at a truly huge $6.3B.
  • Sales jumped 37% to a record $96B, topping analysts' expectations.
  • But the stock fell after earnings because Amazon expects to see less profit during the holiday quarter than it did last quarter. Sounds... counter-intuitive.

Quick, create a diversion... Amazon knows that its mega sales were driven by a world-shattering pandemic, so it made sure to highlight all the good things it did for the world last quarter. It:

  • Is creating more than 200K new jobs, half of which are permanent roles that pay at least $15/hour with benefits.
  • Donated millions to support educational efforts, COVID-19 relief charities, and wildfire-related causes.
  • Expanded its Climate Pledge and ordered 100K electric delivery vans from Rivian (expect to see them all on the road in 2030).

Amazon's future: cloudy with a chance of breakup?... Amazon's cloud computing unit AWS made up a whopping ~57% of its profit last quarter and ~12% of sales. As Congress continues to grill Big Tech on its monopoly-like ways, this question will probably come up: why does the largest e-commerce service also own the largest cloud computing service?

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