earnings fell far below expectations when the e-commerce giant reported first-quarter results after the market close Thursday. Though some on Wall Street had expected the Seattle-based tech giant to benefit from the increase in online shopping amid the ongoing coronavirus outbreak keeping people at home, Amazon CEOsaid that the company will spend an expected $4 billion in operating profit on coronavirus-related expenses in Q2.
“Under normal circumstances, in this coming Q2, we’d expect to make some $4 billion or more in operating profit,” he said. “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 getting products to customers and keeping employees safe.
Amazon’s stock closed up around 4.3% going into the earnings report, hitting a new high, but fell sharply in after-hours trading.
It'll rebound quick. I'm betting on this.