Amazon growth: Amazon released astonishing news on 2nd Feb 2021. In their Press release about financial results.
They have announced that Amazon CEO Jeff Bezos is transitioning to the Role of an executive Chair in Q3, Andy Jassy is now the new CEO of Amazon.
Andy Jassy has served amazon as CEO of Amazon web Services. Founder and Former CEO Jeff Bezos disclosed in the announcement of his step-down.
“Right now I see Amazon at its most inventive, ever, making it an optimal time for this transition.”
Amazon has set a benchmark in ecommerce businesses. In the recent epidemic we have seen a tremendous amazon growth rate. Amazon has released a press release explaining how much amazon has grown in the past years.
Amazon growth history
Amazon Operating Cash Flow
According to a press Release amazon has increased its operating Cash flow to $66.1 Billion.
If we compare this figure to 2019 their cash flow was $38.5 Billion. If we talk about percentage, Amazon has grown 72% in twelve months.
Amazon Free Cash Flow
Amazon’s Free cash flow has increased to $31.0 billion for the trailing twelve months, compared with $25.8 billion for the trailing twelve months ended December 31, 2019.
Amazon Net Sales
Amazon is truly setting an example in the ecommerce market. According to the data given by Amazon press release.
Net Sales of Amazon are increased from $87.4 billion To $125.6 billion. If Observe this value in percentage, this value is equal to 44% which means amazon has increased its net sales to 44%.
Amazon Net Income
Net income of Amazon has increased to $21.3 billion, or $41.83 per diluted share, compared with net income of $11.6 billion, or $23.01 per diluted share, in 2019.
Amazon Operating Income
Operating income of Amazon has increased to $6.9 billion, compared with an operating income of $3.9 billion in 2019.
will amazon stock continue to grow?
Common shares outstanding plus shares underlying stock-based awards totaled 518 million on December 31, 2020, compared with 512 million one year ago.
Which makes amazon stock a golden chicken for stock investors. In upcoming years amazon is working on further growth which makes amazon stock an excellent investment.
Amazon Future Developments
Employees Safety better job opportunities
Amazon is working to make sure that front line front-line employees can get the Covid-19 vaccine as soon as Possible.
Company is closely watching the vaccination reports. Amazon is also working with medical experts, government and Health workers to ensure the acceleration of vaccine productions and availability.
Amazon has Established a covid-19 testing facility. This Facility can test over 700 employees in one hour.
The company is investing $2.5 Billion in additional pay in 2020. This is on top of the company’s industry-leading starting wage of at least $15 an hour which is double the federal minimum wage.
All full-time employees also receive healthcare and full benefits from their first day on the job.
Empowering Small and Medium-Sized Ecommerce Businesses
The 2020 Holiday season was one of the best holiday seasons in terms of independent business selling on amazon.
The worldwide sale grew 50% as compared to 2019. Amazon sellers reached the $4.8 Billion mark from Black Friday through cyber Monday.
Since the start of the COVID-19 pandemic, Company has sustained more than $5 billion in operational costs on behalf of independent businesses selling in Amazon’s store, and expects to invest billions more through 2021.
In 2020, Amazon increased square footage across its fulfillment and logistics network by 50%, dedicated 60% of fulfillment center capacity to seller products, and postponed annual selling fee adjustments until June 2021.
Expected Amazon business growth
In the first quarter 2021 we expect the company’s Net sales will grow between 33% to 44%. This will turn in a favorable impact of approximately 300 basis points from foreign exchange rates.
Amazon’s Operating income is anticipated to be between $3.0 billion and $6.5 billion, compared with $4.0 billion in first-quarter 2020. This counselling assumes closely to $2.0 billion of costs related to COVID-19.