Amid an unprecedented surge of online shoppers as a result of the pandemic, Amazon has already had its most profitable year ever. According to their Q3 earnings report, Amazon reported profit of $6.3 billion, or $12.37 per share, which is nearly triple the $4.23 a share reported last year. The company reported revenue of $96.1 billion, which is up 38% year-over-year. Analysts were taken by surprise, as expected earnings of $7.41 a share were significantly exceeded.
In total, Amazon has already collected more profit in the first nine months of 2020 than it did in all of 2019, when they had previously reported record earnings of $11.59 billion. Incredibly, Amazon has reached nearly that level of profits in only the second and third quarters of 2020.
Amazon has expanded rapidly this year to address the needs of Americans and others worldwide facing shelter-in-place orders due to the spread of the coronavirus. The company has pushed its workforce to more than 1 million people. Amazon expected that its efforts to build out fulfillment and address the growing need for its services would soak up most of its profit, but has been unable to spend as much as it is taking in.
Amazon expects to blow away its quarterly record for sales this Q4, predicting revenue of $112 billion to $121 billion, while analysts had expected $112.6 billion on average.
“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,” said CEO Jeff Bezos during Q3 earnings news release. “Big thank you to our employees and selling partners around the world who’ve been busy getting ready to deliver for customers this holiday.”