Net income for the quarter fell nearly 31% from the same period in the prior year to $2.5 billion, or $5.01 per share. Wall Street analysts had projected quarterly income of $3.15 billion.
CEO Jeff Bezos warned shareholders that the June quarter could also be challenging for the online retail giant’s finances, as the company plans to reinvest billions of dollars into managing coronavirus.
“If you’re a shareowner in Amazon, you may want to take a seat, because we’re not thinking small,” Bezos said in a release. “Under normal circumstances, in this coming Q2, we’d expect to make some $4 billion or more in operating profit. But these aren’t normal circumstances. Instead, we expect to spend the entirety of that $4 billion, and perhaps a bit more, on COVID-related expenses.”
However, Bezos added: “I’m confident that our long-term oriented shareowners will understand and embrace our approach, and that in fact they would expect no less.”
–This is a developing story and will be updated.