Amazon’s Sales and Profit Rise
Amazon posted record profits in the first quarter of 2021. The report signaled that consumers would keep spending in a growing U.S. economy and converts to online shopping are not likely to leave.
Net sales increased 44% to $108.5 billion in the first quarter, compared with $75.5 billion in first quarter 2020. Excluding the $2.1 billion favorable impact from year-over-year changes in foreign exchange rates throughout the quarter, net sales increased 41%. Operating income increased to $8.9 billion in the first quarter, compared with operating income of $4.0 billion. Net income increased to $8.1 billion , or $15.79 per diluted share, compared with $2.5 billion, or $5.01 in the same period last year.
“Two of our kids are now 10 and 15 years old and after years of being nurtured, they’re growing up fast and coming into their own. As Prime Video turns 10, over 175 million Prime members have streamed shows and movies in the past year, and streaming hours are up more than 70% year over year. In just 15 years, AWS has become a $54 billion annual sales run rate business competing against the world’s largest technology companies, and its growth is accelerating, up 32% year over year. We love Prime Video and AWS, and we’re proud to have them in the family,” said Jeff Bezos, Amazon founder and CEO.
The company expects net sales in the second quarter of 2021 to be between $110.0 billion and $116.0 billion, or to grow between 24% and 30%. Operating income is expected to be between $4.5 billion and $8.0 billion, compared with $5.8 billion in second quarter 2020.