The pandemic is spelling huge profits for companies like Amazon that are seeing increased sales amid more people being home.
In fact, the company is already having their most profitable year in their history and the year isn’t over yet. We’re only just wrapping up the third quarter and they’ve set records, compared to most companies that are struggling along.
Amazon closed up 1.52% on Thursday after reporting their third-quarter profits at $6.3 billion, which comes in at $12.37 per share. This is almost three times what they were reporting at this time last year with $4.23 per share.
Overall the company revenue is $96.1 billion, which is also up by nearly a third from last years $69.98 billion. This comes in at the highest amount they’ve ever reported in a three-month period and far more than even the analysts were expecting with $92.78.
In fact, they’ve made more in profits over the first nine months or three quarters of this year than they did in the entirety of 2019 and much of that is likely because of the current pandemic situation. Evidenced by the fact that the company collected nearly $11.59 billion (the entirety of their profits for 2019) in the second and third quarters of the year, during which the pandemic situation was in full-swing.
More and more people are using the platform as the pandemic continues and shelter-in-place rules take place around the world. They’ve actually continued to expand and grow their workforce while other businesses are cutting theirs. This has been in an effort to increase fulfillment and improve services.
In fact, the company expected to put out even more funds than they took in to provide for this increase, but it turns out they’re making money faster than they can spend it. And they’re expecting things to only continue onward from here.
Amazon is expecting their fourth quarter to be higher than their current record, coming in somewhere between $112 billion and $121 billion. Analysts, on the other hand, are more optimistic about the lower end of that spectrum but with Amazon already making such record numbers there’s no telling just what they could see coming up.
Their stock closed down 1% after-hours, which is attributed to the fact that they had projected operating profit of $1 billion to $4.5 billion, which is lower than the amount that analysts expect. But even still, there’s no telling what could happen to the company moving forward.