New York; Amazon's profit fell 29 per cent in the first quarter as its costs for shipping millions of packages to home-bound customers rose. But the online retail behemoth said its sales soared as more people opt to shop online during the Coronavirus pandemic.
Amazon profit falls as pandemic-related costs rise
Shares of Amazon.com Inc. fell about 5% in after-hours trading following the release of the earnings report. However, the company will likely spend at least $4 billion during the second quarter in order to speed up delivery times with full protection gears and other safety measures.
Amazon profit falls as pandemic-related costs rise
Amazon founder and CEO Jeff Bezos said the company will likely spend at least $4 billion during the second quarter in order to speed up delivery times and buy masks and other protection equipment for workers in its warehouses and Whole Foods supermarkets.
- Shares of Amazon.com Inc. fell about 5% in after-hours trading Thursday following the release of the earnings report.
- The Seattle-based company reported net income of $2.54 billion in the first quarter, compared with $3.56 billion a year ago. Earnings per share came to $5.01, below the $6.23 analysts expected, according to FactSet
- Revenue rose 26% to $75.5 billion, beating expectations of $73.7 billion.
(Inputs from PTI)