• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Trendingnow

1

Jeff Bezos wants the bottom half of earners to pay zero income tax—he says nurses making just $75K should save $12K a year

2

Apple’s Steve Wozniak says he cofounded the tech giant after 5 rejections from HP—not to ‘make money.’ For years, his paycheck was just $50

3

Indeed chief economist says we’re entering an era of ‘great mismatch’ thanks to a generational imbalance of workers

1

Jeff Bezos wants the bottom half of earners to pay zero income tax—he says nurses making just $75K should save $12K a year

2

Apple’s Steve Wozniak says he cofounded the tech giant after 5 rejections from HP—not to ‘make money.’ For years, his paycheck was just $50

3

Indeed chief economist says we’re entering an era of ‘great mismatch’ thanks to a generational imbalance of workers
TechAmazon

Amazon’s second-quarter earnings results just showed why the online retail giant is soaring during COVID-19

By
Jonathan Vanian
Jonathan Vanian
Down Arrow Button Icon
By
Jonathan Vanian
Jonathan Vanian
Down Arrow Button Icon
July 30, 2020, 7:46 PM ET

Amazon continues to benefit from COVID-19 as the company’s overall sales skyrocketed 40% year-over-year to $88.9 billion in its fiscal second quarter.

The online retail and cloud computing giant easily beat analyst expectations that it would bring in $81.24 billion in revenue for its latest quarter, which ended June 30. Amazon’s profits also doubled year-over-year to $5.2 billion in its latest quarter, which is notable considering the company said in April that it was projecting a loss of up to $1.5 billion in its second quarter due to the high costs associated with operating during the coronavirus pandemic.

Amazon chief financial officer Brian Olsavsky told analysts during an earnings call that the company spent over $4 billion on coronavirus-related expenses. These expenditures included adding additional safety measures at the company’s many warehouses and facilities, purchasing personal protective equipment for its numerous workers, and paying a $500 million “thank-you bonus” to logistics and delivery workers. 

But the massive increase in consumers buying more goods via Amazon more than made up for the expense. Olsavsky said that online grocery sales tripled year-over-year in the latest quarter from an unspecified number and that customers of Amazon’s Prime paid-subscription service are “shopping more often” and with “larger basket sizes.”

Olsavsky made no mention of Amazon chief Jeff Bezos’s recent grilling by lawmakers on Wednesday during a congressional hearing about antitrust and the power of tech giants like Amazon, Apple, Google, and Facebook. Analysts on the earnings call also didn’t address the possible ramifications of the antitrust hearings on Amazon, with questions mostly focusing on the company’s solid quarter and what it plans to do with its unexpected big profits.

Olsavsky said that actions like cutting down on marketing spend and reducing travel and related expenses helped contribute to Amazon’s profits for the quarter. When asked whether Amazon would use the extra cash to spend on new investment areas, Olsavsky said that the company already has “a lot of investments already in place” and that Amazon is “always looking for new investments.” He said that much of Amazon’s spending is going to building the necessary infrastructure required to handle the continued heavy demand from customers.

One area that the company cut back on was its Amazon Studios television and film unit, which Olsavsky attributed to Amazon having “to delay production in most studios”—like much of the entertainment industry—due to COVID-19.  

“We are doing that to protect the actors and film crews,” Olsavsky said. 

Not everything went smoothly for Amazon during its latest quarter.

Sales in the company’s AWS (Amazon Web Services) cloud computing unit only grew 29% year-over-year to $10.8 billion, which, while impressive, marks a decline in how fast AWS is growing.  Last quarter, for instance, AWS revenue rose 33% year-over-year to $10.2 billion. It appears that lower corporate spending in IT services, as measured by Gartner in July, is affecting Amazon’s cloud unit in the same way it’s affecting the Azure cloud computing business of Amazon rival Microsoft, which is also growing more slowly than before.

Olsavsky said that companies in industries like hospitality and travel that have been hit especially hard during the coronavirus pandemic are “working very hard right now to cut expenses,” implying that they are spending less on Amazon’s cloud computing service. He said that Amazon will continue to “help our customers save money” for “the long-term health of the relationship.” In other words, Amazon’s not going to be a stickler with its struggling customers right now, because those companies might want to do some major cloud service purchases when the economy recovers.

Still, Olsavsky said that while most companies are hurting because of COVID-19, there are “certainly winners in this.” He said sectors like video conferencing, gaming, and entertainment are “all seeing usage growth,” meaning that companies in those areas are seeing more consumer demand, and therefore, are spending more on cloud services to accommodate.

Indeed, video conferencing company Zoom, streaming service Netflix, and video-gaming company Electronic Arts—who all use AWS—have all had solid quarters during the pandemic, showing big user growth. You can add Amazon to that list of companies thriving during COVID-19.

About the Author
By Jonathan Vanian
LinkedIn iconTwitter icon

Jonathan Vanian is a former Fortune reporter. He covered business technology, cybersecurity, artificial intelligence, data privacy, and other topics.

See full bioRight Arrow Button Icon

Latest in Tech

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in Tech

w
Environmentclimate change
The asphalt industry has a heat problem — and cities are running out of patience
By Aya Diab, Alexa St. John and The Associated PressMay 23, 2026
15 hours ago
SpaceX’s third-generation Starship, which NASA may use to put astronauts on the moon, makes debut in test flight ahead of blockbuster IPO
InnovationSpaceX
SpaceX’s third-generation Starship, which NASA may use to put astronauts on the moon, makes debut in test flight ahead of blockbuster IPO
By Marcia Dunn and The Associated PressMay 23, 2026
16 hours ago
Is a college degree still worth it? Here are 3 things it can teach you that AI can’t do
Future of WorkColleges and Universities
Is a college degree still worth it? Here are 3 things it can teach you that AI can’t do
By Jake AngeloMay 23, 2026
17 hours ago
Ashley Yetman
Commentarydisruption
Everyone is blaming AI for the death of ‘craft.’ Take a good look in the mirror
By Ashley YetmanMay 23, 2026
19 hours ago
Josh Smith, founder of Montana Knife Company.
SuccessEntrepreneurs
This 39-year-old quit his lineman job during the pandemic and built a $50 million company in his backyard
By Nick LichtenbergMay 23, 2026
19 hours ago
Jon McNeill
SuccessCareers
Former Tesla president shares the secret to success he learned from his former boss, Elon Musk: ‘He demands to only work with world-class talent’
By Preston ForeMay 23, 2026
21 hours ago

Most Popular

Jeff Bezos wants the bottom half of earners to pay zero income tax—he says nurses making just $75K should save $12K a year
Success
Jeff Bezos wants the bottom half of earners to pay zero income tax—he says nurses making just $75K should save $12K a year
By Preston ForeMay 21, 2026
3 days ago
Apple’s Steve Wozniak says he cofounded the tech giant after 5 rejections from HP—not to ‘make money.’ For years, his paycheck was just $50
Success
Apple’s Steve Wozniak says he cofounded the tech giant after 5 rejections from HP—not to ‘make money.’ For years, his paycheck was just $50
By Preston ForeMay 22, 2026
2 days ago
Indeed chief economist says we’re entering an era of ‘great mismatch’ thanks to a generational imbalance of workers
Success
Indeed chief economist says we’re entering an era of ‘great mismatch’ thanks to a generational imbalance of workers
By Emma BurleighMay 22, 2026
2 days ago
Microsoft reports are exposing AI's real cost problem: Using the tech is more expensive than paying human employees
AI
Microsoft reports are exposing AI's real cost problem: Using the tech is more expensive than paying human employees
By Jake AngeloMay 22, 2026
2 days ago
Elon Musk's SpaceX IPO filing just told us what business he's betting on for the future—and it's not rockets
Investing
Elon Musk's SpaceX IPO filing just told us what business he's betting on for the future—and it's not rockets
By Shawn TullyMay 23, 2026
23 hours ago
Meet a 21-year-old community college student who's going to China as the first American woman welder in the trades Olympics
Future of Work
Meet a 21-year-old community college student who's going to China as the first American woman welder in the trades Olympics
By Mike Householder and The Associated PressMay 17, 2026
7 days ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.