Business

Amazon Avoids Recovery Blues-WSJ

Amazon reported a 44% surge in first-quarter revenue.


Photo:

Anthony Souffle / Zuma Press

Amazon.com

AMZN 0.37%

We answered at least one major short-term question in Thursday’s first-quarter results, even if some long-term questions remain.

The short-term question was whether online shoppers would suppress clicks when the pandemic was mitigated. And the answer was absolutely no.Company’s Overall revenue surged 44% It exceeded Wall Street’s forecast and was $ 108.5 billion year-on-year. However, the e-commerce business, which consists of online stores, third parties, and subscription segments, has grown even further. Combined revenues for these three segments increased 49% to $ 84.2 billion, accelerating from the 48% growth seen in the seasonally significant fourth quarter.

It’s worth noting, given that Amazon is currently the only big tech company that isn’t facing relatively easy comparisons. Apple. ,

Facebook

And Google’s parent Alphabet Inc.Reported everything Explosive growth number Earlier this week, each began to feel the negative effects of the pandemic in the March quarter of last year. In contrast, Amazon almost everything as shoppers flocked to the site in early 2020 for everything from toilet paper to office supplies and companies rushed to work from home using cloud computing services. Business has become a boom.

This raises concerns that Amazon may come down. Shares have risen less than 7% this year, lagging behind the Nasdaq, S & P 500, and most major tech names. Large companies continue to invest aggressively, adding about 400,000 workers last year in the delivery and logistics sector alone. But it also shows that it can grow very beneficially. Operating profit more than doubled to $ 8.9 billion in the first quarter, with an operating margin of 8.2%, the highest in at least 10 years. Amazon’s share price rose 3% in after-hours trading following the results.

In the long run, Amazon still faces some questions about what the new normal looks like. Last year’s 38% growth seems unsustainable for companies that are currently making $ 443 billion in revenue in 12 months.There is also Government-regulated ongoing ghosts In addition to Pending CEO transition, With the founder

Jeff Bezos

Hand the reins to Andy Jassy later this year. At least Mr. Bezos hasn’t left any confusion.

Write to Dan Gallagher dan.gallagher@wsj.com

Copyright © 2020 DowJones & Company, Inc. all rights reserved. 87990cbe856818d5eddac44c7b1cdeb8

Amazon Avoids Recovery Blues-WSJ

Source link Amazon Avoids Recovery Blues-WSJ

Back to top button