Amazon Emerges As The Winner Of The COVID-19 Outbreak

The coronavirus pandemic has brought historic levels of disruption to every area of business. But the pandemic has actually been good for a small number of companies, such as eBay EBAY and Etsy ETSY, but Amazon.com Inc AMZN has emerged as of biggest winner of that group.

Already the world's richest man, Jeff Bezos has seen his fortune expand by $13 billion as Amazon's share price hit new highs. When it comes to billionaires, he is the biggest winner of the COVID-19 pandemic during which his wealth increased by $308bn. 

First Quarter Earnings

Overall revenue increased to $75.4 billion, up 26% compared to the same time last year. For a business that has been growing as relentlessly as Amazon has over the previous decade, that figure is impressive. Though earnings fell 29% and came in below analyst estimates, Amazon has never been a company worried about profitability. The company also gave Q2 sales guidance of $75-$81 billion. 

The Cloud Is Heating Up

Once again, Amazon Web Services proved its dominance. Revenue in the segment topped $10 billion for the first time, and rose 33% on a year-over-year basis. The segment, which counts Netflix NFLX and the World Health Organization among its clients, has been the company's biggest growth driver for years. 

However, their reign as the kings of the cloud could be in jeopardy. Despite succeeding in having the JEDI contract that Microsoft Corporation MSFT won suspended, Amazon is running out of ways to stop it. Between that and Alibaba Group Holding Limited BABA investing 28 billion to expand its cloud infrastructure, AWS is going to have to fight for market share like it never has had to before. 

Challenges Ahead

CEO Jeff Bezos said on the call they plan to spend $4 billion on COVID-19-related expenses. To put matters into perspective, this figure will be equal to Amazon's entire profit for the next quarter. It needs to deliver products to customers during these government-imposed measures, but also keep employees safe. Protests are taking place, as workers at warehouses feel that the company has not done enough to protect them. Human resources has never Amazon's strong suit, and an unsatisfied workforce is something Amazon will be forced to improve—the sooner the better. 

This article is not a press release and is contributed by Ivana Popovic who is a verified independent journalist for IAMNewswire. It should not be construed as investment advice at any time please read the full disclosure. Ivana Popovic does not hold any position in the mentioned companies. Press Releases – If you are looking for full Press release distribution contact: press@iamnewswire.com Contributors – IAM Newswire accepts pitches. If you're interested in becoming an IAM journalist contact: contributors@iamnewswire.com Questions about this release can be sent to ivana@iamnewswire.com

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Image: Tony Webster