ad
Forex Brokers Award 2020
Vote your favourite broker
Trade 100 Bonus - the best offer on Forex market

Amazon Sees Record Revenues Growth In Q2

Jul 31 2020, 07:42 PM (+06) | Orbex.com

Bumper EPS Beat

Shares in US tech giant Amazon are trading 0.60% higher pre-market on Friday following a bumper Q2 earnings report yesterday.

Amazon reported earnings per share of $10.30. This was a huge upside surprise to the $1.48 EPS expected. Revenues were reported at $88.9 billion, marking a 40% jump on the same quarter last year, with a net income of $5.2 billion.

Regionally, Amazon reported a 43% jump in North American sales which rose to $55.4 billion. International sales were higher by 38%, rising to $22.7 billion. Q2 revenues at this level were well above the $81.56 figure the market was looking for.

Highly Unusual Quarter

Commenting on the results, Amazon CEO Jeff Bezos said:

“This was another highly unusual quarter, and I couldn’t be more proud of and grateful to our employees around the globe. As expected, we spent over $4 billion on incremental COVID-19-related costs in the quarter to help keep employees safe and deliver products to customers in this time of high demand — purchasing personal protective equipment, increasing cleaning of our facilities, following new safety process paths, adding new backup family care benefits, and paying a special thank you bonus of over $500 million to front-line employees and delivery partners.”

The impact of the COVID-19 crisis worked favorably for Amazon which saw a large spike in online sales and deliveries. Amazon reported a 160% increase in delivery capacity in a bid to deal with extra demand created as a result of the lockdowns.

Plans To Increase COVID-19 Related Spending

Amazon played a key role in the fight against COVID-19. The company cited donations of more than $10 million in PPE, including 4.4 million masks. They noted that it wanted to be seen spending money not just making money.

Looking ahead, the company has issued Q3 revenue guidance of $87 billion – $93 billion, above the $86 billion guidance analysts forecasted.  The company also notes that it plans on spending more than $2 billion in Q2 on additional COVID-19 measures. This will include the procurement of PPE equipment and an increase in the deep cleaning of facilities, along with increasing employee wages.

Amazon Holds Test of Support

Amazon

Amazon shares have reversed from recent all-time highs around 3332.07. But, they found support at a retest of the broken trend line at 2883.33.

While this level holds, focus is on continued upside. However, if price breaks back below this level, then the 2793.58 region will be the next support level to watch.

Orbex.com

At Orbex, the client is at the heart of everything we do and everything we do is designed to guarantee your satisfaction. Here’s how Forex Trading with Orbex will enhance your trading experience: Best-in-class customer service, including live chat and free webcall One-hour response time for sales and support requests Multiple asset trading and ECN accounts on MT4 0.9 pip fixed spread at ZERO commission Up to 1:500 leverage