By B.N. Frank
COVID-19 has been devastating on countless American businesses and workers. However, some companies and their owners seem to be doing better than ever. C’est la vie.
US internet giants make another FAAAT load of cash
Facebook, Amazon, Apple, Alphabet, and Twitter have all just published their quarterly numbers and, while fortunes differed, yet more wealth was moved up the food chain.
By Wei Shi
The superstar of the night was by all measures Amazon, which broke all of its own records set last quarter. The total revenues reached $96.1 billion, up by 37%, while the operating profit almost doubled last year’s level to reach $6.2 billion. The net income growth was even more astonishing: it trebled last year’s amount to reach $6.3 billion.
Although the profit margin of 6% may look modest, it is probably worth remembering that for many years, even after it turned profitable, Amazon had been used to operating on margins around 1%. AWS continued to shine: the cloud business contributed 12% of revenue but generated 57% of operating profit.
With all financial metrics being so shiny, there seems to be little to talk about for the CEO. Instead, Jeff Bezos focused his canned remarks on Amazon’s social contribution. “Two years ago, we increased Amazon’s minimum wage to $15 for all full-time, part-time, temporary, and seasonal employees across the U.S. and challenged other large employers to do the same. Best Buy and Target have stepped up, and we hope other large employers will also make the jump to $15. Now would be a great time,” said Bezos.
“Offering jobs with industry-leading pay and great healthcare, including to entry-level and front-line employees, is even more meaningful in a time like this, and we’re proud to have created over 400,000 jobs this year alone.” COVID-19 has changed consumers’ buying behaviours, as Amazon is looking towards a different Q4. “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,” he added.
If Amazon’s story is one of continued high flying,