Amazon Quarterly Profit Triples on Retail Sales, Cloud Computing

Amazon revenues jumped 37 percent to $96 billion (roughly Rs. 7,12,824 crores).

By Agence France-Presse | Updated: 30 October 2020 11:30 IST

Amazon Quarterly Profit Triples on Retail Sales, Cloud Computing

Shares in Amazon dipped around one percent in after-hours trading following the earnings report

Highlights

Shares in Amazon saw gains in both retail and its cloud computing
Amazon bolsters its global workforce to about one million
Amazon Web Services saw revenue growth of 28 percent in the quarter

Amazon's third-quarter profits tripled from a year ago on strong retail sales during the pandemic and growth in cloud computing, the company announced Thursday

Profit increase to $6.3 billion (roughly Rs. 46,764 crores) compared with $2.1 billion (roughly Rs. 15,655 crores) a year ago while revenues jumped 37 percent to $96 billion (roughly Rs. 7,12,824 crores) for the technology and retail colossus.

Shares in Amazon, which saw gains in both retail and its cloud computing, dipped around one percent in after-hours trading following the earnings report.

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The results come as Amazon and other tech giants are under intense scrutiny in the US and elsewhere for their growing dominance of key economic sectors.

The Big Tech firms have held strong in the pandemic by offering goods and connectivity for consumers staying at home.

Amazon also has faced criticism for how it manages its "marketplace" of third-party sellers.

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Amazon chief executive Jeff Bezos used the update to tout the company's leadership on minimum wage as it bolsters its global workforce to about one million.

"Two years ago, we increased Amazon's minimum wage to $15 (roughly Rs. 1,100) for all full-time, part-time, temporary, and seasonal employees across the US and challenged other large employers to do the same," Bezos said.

While a small number of rivals have followed, Bezos said "now would be a great time,” for others to do so.

"We're proud to have created over 4,00,000 jobs this year alone. We're seeing more customers than ever shopping early for their holiday gifts, which is just one of the signs that this is going to be an unprecedented holiday season," Bezos said.

The company said its cloud division Amazon Web Services saw revenue growth of 28 percent in the quarter to $11.6 billion (roughly Rs. 86,504 crores).

The cloud growth and a weaker-than-expected outlook for the crucial holiday quarter may have hurt Amazon's standing with investors and undermined its share price.

Amazon said net sales for the key year-end shopping season are expected to be between $112 billion (roughly Rs. 8,35,212 crores) and $121 billion (roughly Rs. 9,02,327 crores), growing 28 to 38 percent.

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