Amazon shares rise

Despite The Pandemic Amazon’s Shares Rise 60% 

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Amazon shares rise to 60% —more than double compared to last year— at the end of the second quarter. Online retail sales jumped 48%, whereas, revenue from Amazon Web Services recorded for 29% rise. “This was another highly unusual quarter,” said Jeff Bezos.

Today, Amazon reported a 43.4% increase in U.S. sales and 33.5% worldwide revenue growth in the second quarter.

This profit margin is recorded highest for the retail giant in its 26-year of history.

Delivery and video services bundled with the company’s loyalty club Prime are a key reason why customers subscribe to that program and do more of their shopping on Amazon. It holds an edge over rivals like Wal-Mart and Target because all of its sales are online. 

As a response to the pandemic, people were inclined towards online shopping. Consequently, Amazon’s highest-grossing products were from the category of grocery, entertainment, and cloud computing operations

Besides, there was a surge in grocery delivery capacity by 160%, this also increased headcount in its fulfillment network by 34%. Since the COVID-19 pandemic spiked the sales, Amazon has hired about 175,000 employees.

How is Amazon responding to the pandemic crisis?

  1. Amazon cut back on marketing expenses to curtail surging demand and also spent less on travel and meetings. 
  2. Amazon also tripled the number of Whole Foods Market stores where consumers can pick up groceries.
  3. It spent over $4 billion on incremental COVID-19-related costs in the quarter to help keep employees safe and deliver products to customers in this time of high demand.
  4. Amazon purchased personal protective equipment, increased cleaning of the facilities, followed new safety process paths, adding new backup family care benefits, and is paying a special thank you bonus of over $500 million to front-line employees and delivery partners.
  5. Amazon has created over 175,000 new jobs since March and is in the process of bringing 125,000 of these employees into regular, full-time positions.
  6. Amazon is acting aggressively to help protect customers from bad actors and have removed over one million offers from its stores due to COVID-based price gouging.
  7. Alexa is helping customers stay informed and connected, and can now answer tens of thousands of questions related to COVID-19.
  8. AWS is helping healthcare workers, medical researchers, scientists, and public health officials working to understand and fight COVID-19 by providing a centralized repository of curated, up-to-date, pre-processed, and publicly-readable datasets focused on the spread and characteristics of the virus.



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