Amazon's sales surged a staggering 40% to $88.9 billion. That was well above analysts' estimates of $81.6 billion. The online retail giant has served as a lifeline for millions of people during the COVID-19 crisis, at a time when many physical retail stores have been forced to close.
Amazon's cloud computing division, Amazon Web Services (AWS), is also experiencing higher demand as more companies turn to cloud-based services to enable their employees to work from home. AWS revenue climbed 29% to $10.8 billion.
Despite heavy coronavirus-related costs -- such as purchases of safety gear, increased cleaning regimens, and bonuses for employees -- Amazon's profits also bested Wall Street's expectations. Its operating income soared 89% to $5.8 billion, while its earnings per share nearly doubled to $10.30. Analysts' forecasts had called for EPS of only $1.46.
Retail sales were already shifting online before the pandemic. COVID-19 has only served to accelerate this global trend.
Perhaps more than any other business, Amazon (and its shareholders) stands to profit handsomely from the growth of e-commerce in the months and years ahead.