Amazon trounces earnings estimates despite spending $4 billion on coronavirus measures

Author of "The Age of Surveillance Capitalism" Shoshana Zuboff and fmr. Amazon Vice President Tim Bray speak to Amanpour about the unparalleled power of big tech.

Posted: Aug 2, 2020 12:30 PM
Updated: Aug 2, 2020 12:30 PM

Amazon's revenue during the three months ended in June blew away Wall Street projections, as the company continued to experience a surge in demand due to the coronavirus pandemic.

The online retail giant on Thursday generated $88.9 billion in revenue during the second quarter, up 40% from the same period a year earlier and well above the $81.6 billion analysts had expected. Net income doubled during the quarter to $5.2 billion, despite the company's more than $4 billion investment in managing the coronavirus pandemic during the quarter.

Amazon stock jumped more than 4% in after-hours trading Thursday.

"This was another highly unusual quarter, and I couldn't be more proud of and grateful to our employees around the globe," said Amazon CEO Jeff Bezos said in a statement Thursday.

Amazon said its investment in coronavirus measures during the quarter included funds for purchasing protective equipment for employees and enhancing warehouse cleaning as well as adding family care benefits and paying out bonuses to front-line warehouse and delivery workers.

In April, Bezos told shareholders to "take a seat" when he announced the company's plan to reinvest billions in coronavirus-related expenses. Analysts said the investments may have been an effort to avoid employee unionization efforts, which would likely cost the company more in the long run. The company previously came under fire after warehouse workers said the company wasn't doing enough to protect their health.

Amazon's North America sales, in particular, grew 43% year-over-year to $55.4 billion, as consumers continued to rely on online shopping during the pandemic. And the resurgence of coronavirus cases across the United States is likely to "support continued strong order patterns at Amazon," according to Monness Crespi Hardt analyst Brian White.

"Amazon has proven irreplaceable in delivering the daily necessities to people around the world during this crisis, attracting more customers to the platform, expanding the list of products purchased by existing customers and accelerating the shift to ecommerce at large," White wrote in an investor note earlier this week.

Revenue from Amazon Web Services, the company's cloud computing business and single biggest profit driver, grew nearly 29% to $10.8 billion in the quarter.

Amazon's earnings report comes just a day after Bezos testified on Capitol Hill alongside the CEOs of Apple, Facebook and Google as part of a congressional antitrust probe. During the hearing, Bezos acknowledged that Amazon may have improperly used third-party seller data to inform its own product decisions — a key concern over the company's approach to competition.

Still, analysts say it's unlikely the antitrust investigation will have any immediate impact on the company, if at all.

Amazon expects sales to grow between 24% and 33% during the upcoming third fiscal quarter to between $87 billion and $93 billion.

Mississippi Coronavirus Cases

Data is updated nightly.

Cases: 501652

Reported Deaths: 10024
CountyCasesDeaths
Harrison34353540
DeSoto32162408
Hinds31977631
Jackson24508383
Rankin22015390
Lee15596235
Madison14597280
Jones13867243
Forrest13461252
Lauderdale11998317
Lowndes11065188
Lamar10522136
Pearl River9547237
Lafayette8557140
Hancock7740127
Washington7443160
Oktibbeha7147133
Monroe6787178
Warren6706176
Pontotoc6677104
Neshoba6642206
Panola6542131
Marshall6476135
Bolivar6323150
Union605794
Pike5824152
Alcorn5676102
Lincoln5439135
George497479
Scott473098
Tippah470381
Prentiss469182
Leflore4663144
Itawamba4640105
Adams4592119
Tate4592111
Copiah448792
Simpson4448116
Yazoo444887
Wayne440072
Covington429094
Sunflower4240105
Marion4232108
Coahoma4168107
Leake408688
Newton381779
Grenada3711108
Stone360664
Tishomingo360092
Attala331789
Jasper330165
Winston314691
Clay308977
Chickasaw301067
Clarke292594
Calhoun279447
Holmes267987
Smith264150
Yalobusha234547
Tallahatchie228251
Greene219449
Walthall218764
Lawrence213140
Perry205956
Amite205256
Webster203046
Noxubee186840
Montgomery179657
Jefferson Davis172243
Carroll169338
Tunica160039
Benton149239
Kemper141941
Choctaw133326
Claiborne132837
Humphreys129638
Franklin120328
Quitman106528
Wilkinson105139
Jefferson94734
Sharkey64220
Issaquena1937
Unassigned00

Alabama Coronavirus Cases

Cases: 820312

Reported Deaths: 15407
CountyCasesDeaths
Jefferson1148731924
Mobile726221339
Madison52362697
Shelby37640350
Baldwin37266552
Tuscaloosa35120612
Montgomery34123740
Lee23540246
Calhoun22236488
Morgan20958378
Etowah19838500
Marshall18381304
Houston17394412
St. Clair16078339
Cullman15468293
Limestone15354199
Elmore15271286
Lauderdale14323295
Talladega13851283
DeKalb12664261
Walker11221370
Blount10207176
Autauga10048148
Jackson9877184
Coffee9211191
Dale8904185
Colbert8877201
Tallapoosa7093198
Escambia6778134
Covington6715183
Chilton6648162
Russell637559
Franklin5969105
Chambers5612142
Marion5010127
Dallas4979200
Pike4796106
Clarke475884
Geneva4575127
Winston4522103
Lawrence4327117
Bibb425386
Barbour357876
Marengo338390
Monroe331664
Randolph329864
Butler326796
Pickens316584
Henry312866
Hale311688
Cherokee302960
Fayette294180
Washington251651
Cleburne247760
Crenshaw245375
Clay243368
Macon234863
Lamar224847
Conecuh186353
Coosa180340
Lowndes175464
Wilcox168939
Bullock151744
Perry138940
Sumter133238
Greene126744
Choctaw88527
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