Amazon Sales Increase, Profit Lagging Behind
Amazon sales Increase, Profit Lagging Behind. Web giant Amazon further increased revenue in the second quarter.
However, costs also increased accordingly, so that the profit of the company of billionaire Jeff Bezos grew only marginally.
Analysts had expected more profit.
Amazon’s sales were 63.4 billion dollars, a fifth higher than in the same period a year earlier.
More money came in both for the sale of products and the service branch, such as the company’s cloud services.
Costs rise with it
However, Amazon also lost more money per product sold,
and the company also spent more money on warehouses and shipping those products and marketing.
All this managed to a profit of 2.6 billion dollars, was 2.5 billion dollars a year earlier.
It is a difference of 91 million dollars.
For the current quarter, Amazon expects a turnover that is between 66 billion dollars and 70 billion dollars.
The company does, however, expect a considerably lower operating profit than a year earlier due to extra investments in fast delivery.