Amazon.com Inc on Thursday said it could post its first quarterly loss in five years because it is spending at least $4 billion in response to the coronavirus pandemic, including plans to test its workers for COVID-19 and providing them with protective gear, and paying higher wages.
) on Thursday said it could post its first quarterly loss in five years because it is spending at least $4 billion in response to the coronavirus pandemic, including plans to test its workers for COVID-19 and providing them with protective gear, and paying higher wages.
Amazon said it would expect to earn an operating profit of $4 billion or more under normal circumstances in the current second quarter, but instead that amount is being spent on responses to the pandemic. The company forecast operating income in a range from a loss of $1.5 billion to a profit of $1.5 billion, versus a $3.1 billion profit in the same period a year prior.
Revenue for the first quarter rose 26% to $75.5 billion, ahead of analysts’ average estimate of $73.6 billion, according to IBES data from Refinitiv. Jeff Bezos, Amazon’s chief executive and the world’s richest person, said in a news release, “The current crisis is demonstrating the adaptability and durability of Amazon’s business as never before, but it’s also the hardest time we’ve ever faced.
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