It seems that Amazon will suffer from the repercussions of Corona, as did the rest of the world’s economies, as its vision of its operating profits during the fourth quarter of this year was unclear.
The company said in its earnings report, last Thursday, that its operating profits during the last three months of this year will range between one billion and 4.5 billion dollars, a very large range that makes it difficult to predict a specific performance for the company.
During the same period, the company expects $ 4 billion in costs associated with the Coronavirus such as tests, cleaning, extended employee breaks, and social distancing measures.
And the wide range of $ 3.5 billion, between the lowest and highest expectations for operating profits during the fourth quarter, puts many questions on the lips of investors, especially since that gap was $ 1.7 billion last year and $ 1.5 billion in 2018.
Last Thursday, the tech giant announced net sales of $ 96.1 billion as the boom in online shopping linked to the pandemic continued to boost the company’s business.
Amazon sales for the third quarter of 2020 jumped by 37%, compared to the same period in 2019, and the company achieved a record profit of $ 6.3 billion for the quarter, which is nearly three times Amazon’s profits in the same quarter of last year.
The report hit analysts ’previous expectations, with earnings per share of $ 12.37, compared to an expected earnings of $ 7.41 per share.
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