Shares of Amazon.com (NASDAQ:AMZN) surged 76% higher last year, according to data from S&P Global Market Intelligence. Demand for the e-commerce juggernaut's services rose sharply during the coronavirus pandemic, and it's set to grow further in the years ahead.
COVID-19, and the social distancing measures enacted to combat the spread of the disease, resulted in the temporary closure of a huge swath of the traditional retail industry. Amazon and other e-commerce companies stepped up and supplied people with the food and other essentials they needed during the crisis. Online retail sales boomed, and Amazon's profits skyrocketed.
In all, Amazon's sales climbed 37% year over year to $96.1 billion in the third quarter. Its net income, meanwhile, nearly tripled to $2.1 billion.
Many people who made their first e-commerce purchase during the pandemic will continue to shop online. And those who experienced Amazon's broad selection of goods, low prices, and fast delivery times are likely to remain loyal customers.
Investors, therefore, should expect the e-commerce titan to grow briskly in the coming years, while continuing to deliver handsome gains to its shareholders along the way.