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It looks like Amazon will suffer the fallout from Corona, just like other economies around the world, as its vision for its operating profits in the fourth quarter of this year was unclear.
The company said in its earnings report last Thursday that its operating profits for the last three months of this year would be between $ 1 billion and $ 4.5 billion, a very wide range with which it is. difficult to predict a specific performance for the company.
Over the same period, the company expects $ 4 billion in costs associated with the coronavirus such as testing, cleaning, extended breaks for employees and social distancing measures.
The $ 3.5 billion wide range between the lowest and highest expectations for fourth-quarter operating profits poses many questions to investors, especially since the gap was $ 1.7 billion last year and $ 1.5 billion in 2018.
As of Thursday, the tech giant reported net sales of $ 96.1 billion as the online shopping boom linked to the pandemic continued to boost the company’s business.
Amazon’s sales for the third quarter of 2020 jumped 37% from the same period in 2019, and the company posted a record profit of $ 6.3 billion for the quarter, nearly three times the Amazon profits in the same quarter of last year.
The report hit previous analysts’ expectations, with earnings per share of $ 12.37, compared to expected earnings of $ 7.41 per share.
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