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Amazon’s profit tripled: best first quarter ever

On April 29, e-commerce giant Amazon announced its first quarter results. With the store closures caused by the coronavirus, the company consolidated its control of online sales and, despite the reopening towards a post-pandemic scenario, the results of Amazon exceeded expectations. 

Jeff Bezos’ company closed the first three months of 2021 with a record performance: net sales reached 108.5 billion dollars – compared to 75.5 billion dollars in the first quarter of 2020 – recording an increase of 44% year over year. 

“Two of our kids are now 10 and 15 years old—and after years of being nurtured, they’re growing up fast and coming into their own”, said Jeff Bezos, Amazon founder and CEO. “As Prime Video turns 10, over 175 million Prime members have streamed shows and movies in the past year, and streaming hours are up more than 70% year over year. Amazon Studios received a record 12 Academy Award nominations and two wins. Upcoming originals include Tom Clancy’s Without Remorse, The Tomorrow War, The Underground Railroad, and much more. In just 15 years, AWS has become a 54 billion dollars annual sales run rate business competing against the world’s largest technology companies, and its growth is accelerating — up 32% year over year. Companies from Airbnb to McDonald’s to Volkswagen come to AWS because we offer what is by far the broadest set of tools and services available, and we continue to invent relentlessly on their behalf. We love Prime Video and AWS, and we’re proud to have them in the family”. 

Amazon’s net income reached approximately 8.1 billion dollars, or 15.79 dollars per share (more than tripled compared to the net income of 2.5 billion dollars, or 5.01 dollars per share in the previous year) as opposed to the 9.69  dollars expected by analysts. 

Shortly after the announcement of its best first-quarter results ever (only after the 125.6 billion dollars raised in the fourth quarter of 2020 through the postponed Prime Day and the holiday season during the pandemic), Amazon’s shares increased 5% in after-hours trading. 

Other big tech companies such as Google, Apple, Microsoft and Facebook also recorded excellent results in the first three months of 2021. Currently, Amazon’s market capitalization is close to 1.8 trillion dollars. 

According to the analysts, in the second quarter of 2021 net sales are expected to be between 110.0 billion dollars and 116.0 billion dollars, so they are expected to grow between 24% and 30% compared to the second quarter of 2020. 

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