Amazon Inc reported record profits while hinting that many consumers will continue to spend in a growing U.S. economy.
Because brick-and-mortar stores were closed during the coronavirus outbreak, shoppers relied heavily on Amazon for their products, and this continued after the pandemic.
Amazon has already posted four consecutive record quarterly profits, with more than 200 million Prime subscribers, while it has also hired more than 500,000 employees to cope with rising demand.
The company also announced that it expects operating income for the current quarter to be between $4.5 billion and $8 billion, including the $1.5 billion in costs associated with COVID-19.
Despite the successes recorded during and after the pandemic, Amazon has also enjoyed its fair share of difficulties, including a failed attempt by organized workers to unionize an Amazon warehouse in Alabama, and the legal battle in New York over its attitude to profit over worker safety.
Despite these challenges, Amazon’s business has remained strong and shapely, with Michael Pachter, an analyst at Wedbush Securities, saying a surge in Prime subscriptions, consumer acceptance of grocery delivery amid the recession, and an improving economy have benefited Amazon.
For more information, read the original story in Reuters.