Amazon recorded a profit growth more than doubled in Q1-202.
The company’s brilliant performance was due to the skyrocketing online buying and selling activity that occurred during the Covid-19 pandemic. In addition, the US technology giant’s cloud and advertising business lines also support the company’s performance growth.
Quoting from CNN, Friday (04/30/2021), Amazon posted a profit of $ 8.1 billion in the first three months of this year.
Amazon Profit Increase 224%
This number grew 224 percent when compared with the same period last year.
Realized profit growth has also eroded Wall Street analyst forecasts for the company’s profit in the range of $ 4.98 billion.
Overall, Amazon’s operating revenues during the first quarter of this year totaled $108.5 billion, growing 44 percent when compared with the same period last year.
The number also exceeded Wall Street analyst estimates in the range of $104.5 billion.
The company’s cloud computing business line or cloud, Amazon Web Services posted net income of US $ 13.5 billion in the first quarter of 2021.
This number is an increase of 32 percent compared to last year. Amazon Web Services is one of Amazon’s lines of business that contributes the largest revenue to the parent company. The acceleration of revenue growth for the cloud business line is supported by the fact that many companies are adapting technology to help work patterns become increasingly flexible.
Amazon Prime Recorded Good Performance
Its video on demand service business line, Amazon Prime, also recorded quite a brilliant performance this year. Amazon Prime is noted to have more than 200 million paying customers.
The company, founded by Jeff Bezos, is quite optimistic in looking at 2021. Amazon estimates that the company’s revenue will be in the range of $ 100 billion to $ 116 by the first half of 2021. That number has increased 24 percent to 30 percent when compared with last year.
Previously, it was also reported that Amazon plans to increase the wages of their 500,000 employees.
Amazon Vice President Darcie Henry said the company will increase wages by about 50 cents to $ 3 per hour.
The increase in wages is based on a review of the company, which plans to employ tens of thousands of new workers in the shipping, sorting, and packaging sectors, which are the company’s front lines. The plan, the wage increase will begin to be applied in mid-May.
“This amount is above our industry-leading minimum wage standard of around $ 15 per hour and over $ 2.5 we have budgeted in the form of additional bonuses and incentives for frontline workers,” said Henry.