Amazon reported first-quarter revenue of $75.5 billion, while operating expenses reached $71.5 billion. And while Amazon reported a 27 percent increase in net sales compared to the first quarter of 2019 – and signaled that those sales could increase by 18 to 28 percent compared to the second quarter of 2019 – CEO Jeff Bezos has revealed to shareholders that Amazon expects to dedicate a portion of its second-quarter profits to its COVID-19 response.
These expenses include investments in personal protective equipment, enhanced cleaning of facilities and “less efficient process paths” to enable effective social distancing. Mr. Bezos also flagged higher wages for hourly shifts and “hundreds of millions” for Amazon to build out its own COVID-19 testing capabilities.
“There is a lot of uncertainty in the world right now, and the best investment we can make is in the safety and well-being of our hundreds of thousands of employees,” Mr. Bezos said. “I am confident that our long-term focused shareholders will understand and embrace our approach and, in fact, expect no less.”
Amazon’s stock price fell more than 5 percent in after-hours trading following the announcement.
Meanwhile, Apple reported quarterly revenue of $58.3 billion, an increase of 1 percent from the previous quarter. The company withdrew its second-quarter guidance in March, citing impacts from COVID-19.
“Despite the unprecedented global impact of COVID-19, we are proud to report that Apple experienced growth for the quarter, driven by an all-time high in Services and a record quarterly record in wearables,” said CEO Tim Cook. “In this challenging environment, our users are renewed in their reliance on Apple products to stay connected, informed, creative and productive. »
Apple stock was down more than 2 percent in after-hours trading.
