10,000 dollars per second? Amazon results can be amazing

10,000 dollars per second? Amazon results can be amazing

The retailer's quarterly numbers will receive a strong boost from closing sales

Amazon will soon show the world how much money it has made from the "unprecedented shift in demand" to its location from millions of people under closing conditions around the world.

The retailer, run by the world's richest man, Jeff Bezos, will release his sales figures and earnings for the first three months of the year (including the first few weeks of closings in the UK and most of Europe and the United States) on April 30.

Analysts expect Amazon in the first quarter to reach $ 73 billion (£ 58 billion). This will increase by almost 22% compared to the same quarter last year, and will generate sales of $ 10,000 every second, day and night.

Amazon sales were already increasing, but bankers of America analysts say the closure has fueled an "unprecedented shift in demand" to online sellers.

While most companies were hit hard by the impact of the looming epidemic and recession, stocks in Amazon rose to a record low as hundreds of millions of people stuck at home heading to the delivery giant to feed and entertain them.

"Amazon has become a tool in this crisis - defensive, reliable and indispensable," said Josh Brown, CEO of Ritholtz Wealth Management.

Ads

Analysts at US investment bank Coin likened the impact of the shutdown to the shopping frenzy on Black Friday in November, or the Prime Day sale to Amazon in July. "Amazon has seen a huge increase in demand" as shoppers are forced to stay indoors, creating an essential type of Prime Day / Black Friday style, they wrote.

Amazon's share price rose 42% last month, posting a record high above $ 2,400 last week. One month ago, they switched their hands at $ 1.689.

At these prices, business value is estimated at $ 1.2 trillion, making it the third largest American company after Microsoft ($ 1.35 trillion) and Apple ($ 1.25 trillion).

The stock price hike has already added to Bezos' tremendous wealth. The man who started Amazon in his boat in 1994 and still owns 11% of the company’s shares, saw his paper wealth swell by $ 13 billion this week alone to $ 145 billion. He is now worth $ 40 billion more than the second richest person, Bill Gates, and has twice the wealth of third-placed Warren Buffett.

Amazon will remain one of the most important companies during this crisis

Joshua Warner, IG Index

Bezos, who donated $ 100 million (£ 80 million) to the American Nutrition Foundation, told the staff that he was focusing on developing tests that would help Amazon employees keep up the work. In his annual message to shareholders on Thursday, Bezos said that Amazon had brought together a team of scientists and software engineers to build in-house testing capacity, and hoped to build its own test lab soon.

"Regular testing on a global scale, in all industries, will help keep people safe and help the economy get back to work. For this to work, we as a society need much more testing capacity than is currently available."

Amazon also quickly assigns employees to keep up with the demand from shoppers. The company said on Monday it would employ an additional 75,000 employees to help it tackle the increase in orders. These new recruits come on top of the 100,000 already taken over since the Coronavirus crisis hit western economies last month. Additional workers will take the global workforce of Amazon to nearly a million people.

Joshua Warner, analyst at IG Index, a London-based business, said: “Amazon shines from all angles during the Coronavirus crisis. Ultimately, Amazon will remain one of the most important companies during this crisis, providing major services including food Entertainment and shopping while consumers have fewer retailers to choose from.

He added: "Amazon shares rose to a new record." "Of all the companies that could benefit, Amazon is a clear winner."