Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  Equities  >  Nasdaq  >  Amazon.com, Inc.    AMZN

AMAZON.COM, INC.

(AMZN)
  Report
SummaryQuotesChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
SummaryMost relevantAll NewsPress ReleasesOfficial PublicationsSector newsMarketScreener StrategiesAnalyst Recommendations

Amazon com : sees pandemic boosting holiday sales and investment in delivery

10/29/2020 | 08:40pm EST
FILE PHOTO: The logo of Amazon is seen at the company logistics centre in Boves

(Reuters) - Amazon.com Inc on Thursday forecast a jump in holiday sales - and costs related to COVID-19 - as consumers continued to shop more online during the pandemic.

A company executive added that heightened spending on delivery infrastructure would likely continue over years, and shares fell 2% in after-hours trading.

Since the start of the virus outbreak in the United States eight months ago, consumers have turned increasingly to Amazon for delivery of groceries, home goods and medical supplies. Brick-and-mortar shops closed their doors; Amazon by contrast moved to recruit over 400,000 workers and earned $6.3 billion in the just-ended quarter, its second consecutive record profit.

That has kept the world's largest online retailer at the center of workplace and political tumult. Democratic politicians this month accused Amazon of holding "monopoly power" over merchants on its platform, which the company disputes. Meanwhile, more than 19,000 of Amazon's U.S. employees contracted COVID-19, and some staff protested for site closures.

Amazon's response now includes an estimated $4 billion in costs related to COVID-19 this holiday, up from $2.5 billion last quarter. It is testing employees for the virus and getting protective gear for new hires. It also is working less productively because of social distancing at its warehouses, which accounts for a big part of its pandemic expense, Chief Financial Officer Brian Olsavsky said on a call with reporters.

Amazon forecast operating profit to be between $1.0 billion and $4.5 billion, short of $5.8 billion analysts were looking for, according to research firm FactSet.

Competition this holiday remains fierce for the company in retail - and in the cloud. A traditional bright spot, cloud computing division Amazon Web Services (AWS) is dueling with smaller rival Microsoft Corp for business with a big potential during the pandemic, from remote work to cloud-based gaming.

In the just-ended third quarter, AWS sales grew 29%, while Microsoft reported a 48% rise in revenue for its Azure cloud.

'TIGHT ON CAPACITY'

Still, Amazon's sales are shaping up to hit a record level. Jeff Bezos, Amazon's chief executive and richest person in the world, said in a press release, "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."

The company reported that customers in its loyalty club Prime were shopping more often, renewing their membership at higher rates and, internationally, turning to Amazon much more for video entertainment. Merchants also expanded their budgets for advertising on Amazon in the third quarter versus a contraction during the pandemic's spring peak.

The question for some analysts has been whether Amazon's consumer division can keep up with still-growing purchases during the pandemic.

The company has long worked to avoid a repeat of the 2013 season when delays left some without presents on Christmas Day. Amazon now handles more deliveries in house, and this year it moved its marketing event Prime Day - usually in July - to October, letting customers place holiday orders early.

CFO Olsavsky told reporters that the company is "not totally insulated" from challenges its delivery partners may be facing this quarter, though the online retailer feels ready for the holiday season.

"We do think it will be tight on capacity industry-wide, and we're no exception to that," he said. "It does behoove shoppers to shop early."

Olsavsky said on a call with analysts that Amazon's fulfillment and logistics square footage would be 50% higher this year. He said the company already has spent heavily on expanding its transport capability, part of some $30 billion in capital expenditures and leases through the third quarter. The heightened transportation investment will likely continue over years to come, he said.

For the fourth quarter, Amazon said it expects net sales of $112 billion to $121 billion. That would mark the company's first over $100 billion and follows a third-quarter revenue beat that analysts such as eMarketer's Andrew Lipsman did not expect.

"While it was clear that the pandemic-driven shift to e-commerce would keep Amazon's topline elevated, it surprised by easily surpassing an already high bar," Lipsman said.

(Reporting by Akanksha Rana in Bengaluru and Jeffrey Dastin in San Francisco; Editing by Vinay Dwivedi and Grant McCool)

By Jeffrey Dastin and Akanksha Rana


© Reuters 2020
Stocks mentioned in the article
ChangeLast1st jan.
AMAZON.COM, INC. -0.52% 3186.73 Delayed Quote.72.46%
MICROSOFT CORPORATION -0.52% 214.24 Delayed Quote.36.57%
All news about AMAZON.COM, INC.
12/03AMAZON COM : Statement of Changes in Beneficial Ownership
PU
12/03Justice Department accuses Facebook of discriminating against U.S. workers
RE
12/03AMAZON COM : More than 400 lawmakers from 34 countries back 'Make Amazon Pay' ca..
RE
12/03Walmart, Like Amazon, to Pay Holiday Bonuses to U.S. Workers -- 2nd Update
DJ
12/03AMAZON COM : Creating a more accessible world
PU
12/03AMAZON COM : Alexa opens new doors for mobility and independence
PU
12/03WALMART : Like Amazon, to Pay Holiday Bonuses to U.S. Workers -- Update
DJ
12/03GLOBAL MARKETS LIVE: 3M, Amazon, Merck…
12/03WALMART : Like Amazon, to Pay Holiday Bonuses to U.S. Workers
DJ
12/03AMAZON COM : Announces New Fulfillment Center in Oklahoma City
BU
More news
Financials (USD)
Sales 2020 380 B - -
Net income 2020 18 068 M - -
Net cash 2020 44 305 M - -
P/E ratio 2020 91,8x
Yield 2020 -
Capitalization 1 599 B 1 599 B -
EV / Sales 2020 4,09x
EV / Sales 2021 3,42x
Nbr of Employees 798 000
Free-Float 81,7%
Chart AMAZON.COM, INC.
Duration : Period :
Amazon.com, Inc. Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends AMAZON.COM, INC.
Short TermMid-TermLong Term
TrendsNeutralNeutralBullish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus BUY
Number of Analysts 53
Average target price 3 821,74 $
Last Close Price 3 186,73 $
Spread / Highest target 41,2%
Spread / Average Target 19,9%
Spread / Lowest Target 9,83%
EPS Revisions
Managers
NameTitle
Jeffrey P. Bezos Chairman, President & Chief Executive Officer
Dave Clark Senior Vice President-Worldwide Operations
Brian T. Olsavsky Chief Financial Officer & Senior Vice President
Patricia Q. Stonesifer Independent Director
Thomas O. Ryder Independent Director
Sector and Competitors
1st jan.Capitalization (M$)
AMAZON.COM, INC.72.46%1 598 946
JD.COM, INC.139.51%130 779
WAYFAIR INC.165.32%24 135
ETSY, INC.249.30%19 496
MONOTARO CO., LTD.109.37%15 040
ZOZO, INC.19.74%7 483