Amazon on Thursday followed a trend among the country’s biggest tech companies. The company says it made more money in its latest quarter than it did last year — more money.
The company said sales for the three months ended June reached $113.1 billion, up 27% from a year earlier, when lockdowns were at their highest. It made $7.8 billion in profit, up 48% from $5.2 billion a year ago.
The results are an indication that even as businesses reopened after the peak of the pandemic, many people continued to shop online, and much of that business continued in Amazon’s direction. . The other biggest tech companies — Apple, Facebook, Google and Microsoft — also reported blockbuster results this week.
But Brian Olsavsky, The company’s chief financial officer, said in a call with reporters that online sales growth has slowed down some as more people shop in person and spend time on vacation or socializing. “All is well,” he said, “but that tends to get them doing things other than the store.”
Shares of Amazon stock fell more than 7% in aftermarket trading, as investors expected even higher sales and a brighter outlook for the next quarter. Amazon is valued at about $1.8 trillion, more than twice its pre-pandemic value.
Amazon’s profits beat investor expectations as its most profitable businesses continued to thrive. Its cloud computing division is now larger than most companies — Morgan Stanley estimates it’s worth $600 billion — and growth continues to be strong. Cloud computing revenue grew 37% to $14.8 billion. The “other” business, mainly the advertising business, grew 87% to $7.9 billion. And in its consumer business, Amazon’s total revenue from fees it charges marketplace sellers is $25 billion.
Subscriptions, mostly Prime members, brought in $7.9 billion. About 200 million people are now Prime members, and a recent analysis from Consumer Intelligence Research Partners found that they shop at Amazon an average of 27 times a year, almost twice as much as customers who are not Prime members.
Amid a construction boom to expand fulfillment and delivery networks, the company added 64,000 workers in the past three months and now employs more than 1.3 million people – 52% more than at the time. this last year. In a competitive labor market, Amazon has raised wages, what Olsavsky calls “one of the larger factors of inflation in our business today.” He said the company expects to open more new facilities in the coming months as the holiday shopping season hits.
Comparing Amazon’s performance to last year has been somewhat difficult this quarter. Last year, the company saw sales spike after adjusting its HR and other business divisions to better meet demand caused by the pandemic. But also this year, Amazon’s Prime Day deals fall in June instead of October, helping to boost revenue this quarter. JP Morgan estimates this year’s event will generate about $8.4 billion in revenue.