Amazon reported a jump in profits for its latest quarter, bolstered mainly by the nationwide shift to online shopping. The company said Thursday that its profits for its latest quarter increased by 197% to around $6.3 billion.
For its latest quarter ended Sept. 30, Amazon reported total sales revenues of $96.1 billion. This was a 37% increase when compared to its revenues over the same period last year. Both its sales and profits topped average analysts' estimates. The numbers reported by Amazon do not include sales generated during its postponed Prime Day Event, which took place earlier in the month instead of over the summer.
Direct sales of its own products, including its Alexa smart speakers, increased by 38% when compared to the previous quarter. Sales of products from third-party sellers on its website surged by 55% for the period.
Apart from its e-commerce business, Amazon's cloud computing business also contributed to its stellar performance over the three months. Profits generated by Amazon Web Services for the period grew by 29%, while its advertising business grew by 51% over the period. The only business unit in the red was Amazon's physical stores, which declined by 10%.
"There is no doubt that Amazon's latest results show it continues to be a winner from the disruption caused by the pandemic," analysts at Global Data Retail said in a note to its clients.
In its forecasts for the next quarter, Amazon said that it expects sales to reach between $112 billion and $121 billion. It predicts that it might be spending around $4 billion in additional costs related to the pandemic.
Similar to other online retailers, Amazon had greatly strengthened its position during the months of forced lockdowns and shelter-in-place orders. The company bolstered its logistics operations and increased its spending to attract new consumers and Prime members.
Amazon's continued dominance in the U.S.' e-commerce space has made it the target of lawmakers and regulators along with other tech giants such as Facebook and Google. Earlier this month, Amazon was accused by the House Judiciary Committee of engaging in "extensive anticompetitive" behavior, which the company has denied.