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Amazon’s Q1 revenue increased by nearly 30%, and Q2 spent 4 billion US dollars to deal with the epidemic

On May 1, Beijing time, the US e-commerce giant Amazon announced its first-quarter results. The financial report showed that Amazon ‘s net income in the first quarter reached 75.5 billion US dollars, a growth rate of 27%, exceeding market expectations of 73.6 billion US dollars.Under the US accounting rules, net profit reached 2.5 billion US dollars, a 29% annual decline, lower than market expectations.Affected by the new coronary pneumonia epidemic, Amazon ‘s traffic has increased significantly. CEO Bezos expects to realize an operating profit of US $ 4 billion or higher in the second quarter of this year, but he said that the company will plan to spend US $ 4 billion or moreMulti-profit, used to provide customers with products and related expenses to ensure the safety of employees, such as providing free new crown virus detection for all employees.Affected by this news, Amazon suffered a sharp fall of nearly 5% after the market.In the first four months of this year, Amazon’s advance rose to 33.89%, the previous Nasdaq index performance.Under the epidemic, e-commerce and cloud computing sales surged specifically to segmented businesses. Amazon’s e-commerce business, advertising business, and cloud computing business AWS, etc., experienced a surge due to the outbreak.Due to the huge increase in the demand for telecommuting, AWS’s revenue in the first quarter exceeded the 10 billion mark for the first time to reach 10.2 billion US dollars, an annual increase of 33%; advertising business growth increased by 43.8% reached 3.9 billion US dollars. Amazon said that the tourism industry and the automotive industry have been affected by the epidemic, but the increase in traffic in other areas has also played a positive role in the advertising business.Under the epidemic, users in Europe and the United States and other regions have increased e-commerce shopping consumption due to home orders. Amazon has exposed that the main changes in users’ consumption habits are reflected in the grocery business field. Grocery online sales have increased, and fresh food distribution has also been significant.This change has continued since March.”We are now working 24 hours, the distribution capacity has increased by 60%, and the total food stores that support self-mention have grown from 80 before the outbreak to more than 150.The physical store grows 8% every year, but it is basically a whole food store. Some of our employees work in the store and some do delivery, to ensure a good shopping experience for consumers.”Dave Fildes, head of investor relations at Amazon, said.Amazon Chief Financial Officer Brian Olsavsky said on the conference call that Prime members have performed well during the epidemic. “We see that the self-pickup service provides a lot of convenience, member consumption has increased, and the types of purchases have also increased.”We have also seen that people’s use of Amazon’s media and digital services business has also increased, and streaming media views doubled in March.””In the United States, where the epidemic is severe, Amazon ‘s revenue in North America reached US $ 461 billion, an annual increase of 29%, which is higher than market expectations of US $ 44.3 billion; international revenue was US $ 19.1 billion, which exceeded growth by 18%, in line with market expectations.Although the new crown epidemic has a catalytic effect on Amazon’s business in the second quarter or US $ 1.5 billion per year, the epidemic also has an impact on Amazon’s costs.For example, in terms of logistics, Amazon has increased the hourly wages of employees in multiple countries and regions, and related expenditures have reached as high as $ 700 million.In addition, due to the surge in e-commerce orders and the overload of logistics centers, Amazon must suspend the “one-day delivery” service, extend the delivery time of non-critical materials to 1 to 4 days, and also suspend the transportation of non-critical materials in multiple countries.Brian Olsavsky mentioned that the region where Amazon is currently suffering the most is India, because Amazon only allows grocery business in India, which has led to a significant decline in the company’s product supply.However, he believes that once the Indian government allows Amazon to resume normal operations, the company will soon expand its supply.In addition, a French court ruled that Amazon must close six storage centers in France, and the company is appealing the matter.For the performance in the second quarter, Amazon predicts that the company’s net profit will be between 75 billion and 81 billion U.S. dollars, and its operating profit will be between negative 1.5 billion and 1.5 billion U.S. dollars.Candidate for Brian Olsavsky, these expenditures are mainly related to the response to the outbreak, including personnel costs, wages, and bailout investments. It is not yet determined how long these costs will continue, although these costs are temporaryYes, but very huge, and the duration is uncertain.During the conference call, Brian Olsavsky found that the company will spend $ 300 million on new coronavirus detection. The company has absorbed the best people and hopes to scale the detection of new coronaviruses.”Our current focus is not on what business benefits this will bring, or to improve our detection capabilities, maybe we can help others in the future.”Sauna, night net editor Lu Yifu Li Weijia proofread Chen Diyan