Amazon Sales Surge But Bezos Says Coronavirus Costs Could Hit $4 Billion

Amazon CEO and founder Jeff Bezos says it will take virtually all of its upcoming second-quarter operating profit to fund protective gear for employees and get products to customers. CNET reports: “If you’re a shareowner in Amazon, you may want to take a seat, because we’re not thinking small,” he wrote Thursday. “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.” That spending includes higher wages for workers, more safety gear like face masks and Amazon’s internal development of COVID-19 testing capabilities. That spending could drive Amazon to report an operating loss in the second quarter, the company said Thursday. While Amazon’s stock hit an all-time high this month, shares tumbled more than 5% after the market’s close following Bezos’ warning about these additional costs.

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Source: Slashdot