Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

Amazon's profits more than tripled in the first three months of 2021

Amazon's profits more than tripled in the first three months of 2021

Amazon shares have risen 46% in the last year - fuelled by rising demand for home deliveries as a result of the pandemic.

Amazon's profit in the first three months of 2021 came in at $8.1bn (£5.8bn) - more than triple what it was in the same period last year.

The online marketplace is among the businesses that have thrived during the various government lockdowns aimed at limiting the spread of the coronavirus.

As many millions of people were forced to stay in their homes, Amazon was relied on for the delivery of supplies.

Since the pandemic began, the business has posted four consecutive record quarterly profits, attracted more than 200 million Prime loyalty subscribers, and recruited more than 500,000 employees to keep up with the demand.

Revenue was up 44% to $108.5bn (£77bn), making Amazon one of just four US companies to have reported quarterly revenue above $100bn (the others being Apple, Exxon Mobil and Walmart).

Sales at Amazon's ad business were up 77% and its cloud-computing business - which helps power the online operations of Netflix, McDonald's and others - grew by 32%.

Brian Olsavsky, Amazon's chief financial officer, said many businesses want to outsource their technology infrastructure to Amazon Web Services.

"We expect this trend to continue as we move into the post-pandemic recovery," he said.

Jeff Bezos will step down as chief executive this year in favour of a role as executive chairman.


But COVID-19 has brought extra costs: The company has purchased cargo planes and new warehouses to get its items closer to customers and hasten delivery.

Amazon has also faced activism from within its workforce, recently seeing a unionisation effort defeated at a warehouse in Alabama.

The push for unionisation was the biggest in Amazon's 26-year history and it was only the second time such an effort from within the business had reached voting stage.

The criticisms of the company's working environment appeared to prompt Mr Bezos' admission earlier this month: "We need to do a better job for our employees".

Neil Saunders, managing director of GlobalData, said Amazon's weak spot was its physical retail.

"To us, Whole Foods reveals the Achilles' heel of Amazon: as great as it is at functional factors such as convenience, operational prowess, technological innovation and so forth, it lacks something of a soul when it comes to creating inspiration and excitement.

"This especially applies to physical spaces but is also evident in the very functional nature of its website and its difficulty in gaining traction in some sectors like luxury fashion.

"At one level this doesn't matter as Amazon's skills and differentiation is elsewhere.

"However, that weakness one of the big opportunities for other retailers and, as a retailer like Target shows, focusing on things that Amazon isn't so good at is a recipe for considerable success."

AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
Satirical Sketch Sparks Political Spouse Feud in South Korea
Indonesia Quarry Collapse Leaves Multiple Dead and Missing
South Korean Election Video Pulled Amid Misogyny Outcry
Asian Economies Shift Away from US Dollar Amid Trade Tensions
Netflix Investigates Allegations of On-Set Mistreatment in K-Drama Production
US Defence Chief Reaffirms Strong Ties with Singapore Amid Regional Tensions
Vietnam Faces Strategic Dilemma Over China's Mekong River Projects
Malaysia's First AI Preacher Sparks Debate on Islamic Principles
Meta and Anduril Collaborate on AI-Driven Military Augmented Reality Systems
Russia's Fossil Fuel Revenues Approach €900 Billion Since Ukraine Invasion
Alcohol Industry Faces Increased Scrutiny Amid Health Concerns
U.S. Goods Imports Plunge Nearly 20% Amid Tariff Disruptions
Italy Faces Population Decline Amid Youth Emigration
Trump Accuses China of Violating Trade Agreement
OpenAI Faces Competition from Cheaper AI Rivals
Foreign Tax Provision in U.S. Budget Bill Alarms Investors
Russia Accuses Serbia of Supplying Arms to Ukraine
Gerry Adams Wins Libel Case Against BBC
EU Central Bank Pushes to Replace US Dollar with Euro as World’s Main Currency
U.S. Health Secretary Ends Select COVID-19 Vaccine Recommendations
Trump Warns Putin Is 'Playing with Fire' Amid Escalating Ukraine Conflict
India and Pakistan Engage Trump-Linked Lobbyists to Influence U.S. Policy
U.S. Halts New Student Visa Interviews Amid Enhanced Security Measures
Trump Administration Cancels $100 Million in Federal Contracts with Harvard
SpaceX Starship Test Flight Ends in Failure, Mars Mission Timeline Uncertain
King Charles Affirms Canadian Sovereignty Amid U.S. Statehood Pressure
EU Majority Demands Hungary Reverse Anti-LGBTQ+ Laws
Top Hotel Picks for 2025 Stays in Budapest Revealed
Iron Maiden Unveils 2025 Tour Setlist in Budapest
Chinese Film Week Opens in Budapest to Promote Cultural Exchange
Budapest Airport Launches Direct Flights to Shymkent
Von der Leyen Denies Urging EU Officials to Skip Budapest Pride
Alcaraz and Sinner Advance with Convincing Wins at Roland Garros
EU Ministers Lack Consensus on Sanctioning Hungary Over Rule of Law
EU Nations Urge Action Against Hungary's Pride Parade Ban
Putin's Helicopter Reportedly Targeted by Ukrainian Drones
U.S. Considers Withdrawing Troops from Europe
Russia Deploys Motorbike Squads in Ukraine Conflict
Critics Accuse European Court of Human Rights of Overreach
Spain Proposes 100% Tax on Non-EU Holiday Home Purchases
German Intelligence Labels AfD as Far-Right Extremist
Geert Wilders Threatens Dutch Coalition Over Migration Policy
Hungary Faces Multiple Challenges Amid EU Tensions and Political Shifts
Denmark Increases Retirement Age to 70, Setting a European Precedent
Any trade deal with US must be based on respect not threats', says EU commissioner
UK Leads in Remote Work Adoption, Averaging 1.8 Days a Week
Thirteen Killed in Russian Attacks Across Ukraine
High-Profile Incidents and Political Developments Dominate Global News
Netanyahu Accuses Western Leaders of 'Emboldening Hamas'
Ukraine and Russia Conduct Largest Prisoner Exchange of the War
×