Amazon made a net profit of $ 7.8 billion in the second quarter, 48% more than a year ago, a result driven by e-commerce and the cloud that are not weakening even with the lifting of sanitary restrictions. The tech giant, however, lost 7% on the stock market after Wall Street closed on Thursday, due to a turnover of 113 billion, an increase of 27%, but 2 billion less than analysts predict.
“We’ve been trying to assess Covid’s impact on our business in recent quarters.” explained Brian Olsavsky, the group’s chief financial officer, during a conference with analysts. “We have generally exceeded our own forecasts (…), but the fact that people have been vaccinated has played a role: they move more, they don’t just shop online anymore, they spend more time outdoors and they shop less, and that’s very good.” he continued. That hasn’t stopped Amazon from taking advantage of its “Prime Day,” an annual two-day promotional operation on its e-commerce website that targets subscribers to its Prime formula, including free 24-hour delivery and other benefits.
“In twenty countries, Prime subscribers spent more and saved more on ‘Prime Day’ than on any other before, buying 250 million products.”, the Seattle group said in a statement on the results. According to eMarketer, in 2021, global platform sales will grow by more than 26% to $ 626.6 billion, or 12.7% of the global e-commerce market. These balance sheets have also greatly benefited independent resellers, said the firm, which is regularly accused of beating competition on a platform where it also markets its devices and consumer goods.
Cloud and space
In late May, a prosecutor in the U.S. capital, Washington, filed a lawsuit against Amazon, accusing him of preventing retailers from selling their products cheaper elsewhere than on his website. These political pressures and frequent criticism of the association about the working conditions in the company’s warehouses did not affect its commercial success. At the end of May, Amazon also offered the nearly 100-year-old Hollywood studio Metro-Goldwyn-Mayer for $ 8.45 billion. This catalog will allow him to significantly expand Prime Video, his streaming service included in the subscription.
The appetite for the cloud, ie remote computing, is not diminishing, not even the gradual abolition of health restrictions, thanks to the needs of companies for storage and computer data processing. AWS, the cloud division of global industry leader Amazon, earned $ 14.8 billion in revenue, 37% more than the same period a year ago. The company has recently achieved a great victory in this field, which represents new lucrative opportunities. In early July, the US Department of Defense canceled a mega-contract in the cloud worth 10 billion dollars, which was awarded to Microsoft in 2019 to the detriment of Amazon. Instead, it plans to hire several companies, starting with two competitors.
The new head of the group is also Andy Jassy, former director of AWS. Jeff Bezos, the founder of the site, which began as an online bookstore 27 years ago, handed over the helm to him earlier this month while he remained chairman of the board. Therefore, he intends to dedicate himself further to other projects, and he has just realized his dream of going into space on the first flight with the human crew of his space tourism company Blue Origin.