Amazon Warns Shareholders That Coronavirus Will Eat Up Q2 Profits
Jeff Bezos has a warning for Amazon shareholders. Operating profits were expected to hit $4 billion in the second quarter. Now, because of the coronavirus pandemic, Amazon is planning to pour $4 billion or more into “COVID-related expenses.” These include wage hikes and safety gear, as well as coronavirus testing capabilities. Shares fell 4% on the news.
“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.”