Amazon’s quarterly profits fall as costs rise

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Amazon.
Image credit: Reuters

San Francisco: Amazon said Thursday that its profit in the last quarter fell to $ 3.2 billion (Dh 11.75 billion) as the pandemic, hirings and product shortages pushed costs up.

The e-commerce colossus said its sales reached $ 110.8 billion, but its profits were about half of its net profit compared to the same quarter last year.

Global supply chain bottlenecks and a shortage of chips began to weigh on large companies, although a spike in the United States of coronavirus cases caused by the Delta variant would normally have pushed demand from retailers. online like Amazon.

“We have always said that when we are faced with the choice between maximizing short-term profits and what is best for long-term customers, we will choose the latter,” said Andy Jassy, ​​Managing Director of Amazon. .

Microsoft, the parent company of Google, Alphabet and Facebook, the victim of a scandal, posted huge profits this week, although Twitter reported a large loss due to a shareholder lawsuit settlement.

Big Tech is under close scrutiny from antitrust regulators, especially Apple, which has appealed a major US court ruling that would force the iPhone maker to loosen its grip on its market. online applications.

But the pandemic, which has returned to center stage in the United States with the wave of Delta variants, has driven demand for online services.

In Amazon’s case, a growing number of consumers have turned to its platform for everything from tofu to toilet paper, and its cloud computing division has also grown to help businesses and consumers stay connected.

Earlier in the week, Google’s parent company Alphabet reported quarterly revenue of $ 65.1 billion that eclipsed the same period last year by around 41% as the engine of Online advertising and the company’s cloud services helped generate a profit of $ 18.9 billion.

The Colossus of Silicon Valley remains a centerpiece of online business, with offerings such as its search engine, advertising marketplace and YouTube video platform giving it vast global influence.

Google’s results came the same day Microsoft announced a quarterly profit increase fueled by demand for cloud computing, saying it made $ 20.5 billion in profit as revenue jumped 22%. .

Facebook’s strong financial figures coincide with the main social network struggling with a new crisis since former employee Frances Haugen disclosed reams of internal research showing executives were aware of the potential for harm from their sites.

The platform announced that its third-quarter profit reached $ 9.2 billion, an increase of 17%, and its user count rose to 2.91 billion.

Twitter posted a loss in the quarter on Tuesday, however, fueled by the settlement of more than $ 800 million in a lawsuit alleging investors were misled about slowing user growth on the platform.


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