As Amazon.com Inc reported its third consecutive record profit and quarterly sales above $100 billion for the first time the company on Tuesday said founder Jeff Bezos would step down as CEO and become executive chairman. Current cloud computing chief Andy Jassy will make Amazon’s next chief executive officer because of the transition, slated for the third quarter. According to IBES data from Refinitiv beating analyst estimates of $119.7 billion net sales rose to $125.56 billion as consumers turned to the world’s largest online retailer for holiday shopping.
Jeff Bezos decision’s in the early days
In a note to employees posted on Amazon’s website by Bezos, who started the company 27 years ago as an internet bookseller said that as Exec Chair he will stay engaged in important Amazon initiatives but he also has time and energy to in order to focus on the Day 1 Fund, the Bezos Earth Fund, Blue Origin, The Washington Post and some of his other passions. He further added that he never had more energy than he has now and its not about his retirement. In after-hours trading Amazon shares were up less than 1%.
Story About Jassy and AWS
According to the company’s website Jassy had joined Amazon in 1997 and has a MBA from Harvard Business School. The company said that he founded Amazon Web Services (AWS) and grew it to a cloud platform used by millions. Jassy’s promotion underscored the importance of web services to Amazon’s future, said Tom Johnson who is the chief transformation officer at Mindshare Worldwide. He said that Jassy’s background in steering AWS just shows how top of mind those services are to Amazon’s business strategy. It’ll be interesting for him to see how that affects their strategy and balancing that priority with a growing ad business and the commerce behemoth. Traditionally a bright spot, Jassy’s AWS fell slightly short of expectations. It posted revenue of $12.7 billion, short of the $12.8 billion analysts had estimated after the cloud computing division announced deals in the quarter with ViacomCBS, the BMW Group and others. At this time Amazon said that it was not announcing a replacement for Jassy. Consumers have turned increasingly to Amazon for delivery of home staples and medical supplies after the start of the US coronavirus outbreak.
Challenges faced by Amazon
Amazon, the world’s largest online retailer recruited over 400,000 more workers and posted consecutive record profits when Brick-and-mortar shops closed their doors and people were jobless. Down from $4 billion in the fourth quarter a total of $2 billion in the first quarter was expected to cost associated with the pandemic, Brian Olsavsky who is Amazon’s chief financial officer told the reporters on a conference call.
Beating estimates for online store sales, subscription sales, third-party service sales such as warehousing and other sales to merchants on its platform, Amazon had another record holiday With its warehouses open. From moving Amazon’s marketing event Prime Day which usually took place in July to October the holiday shopping season was lengthened which gave a boost in the company’s revenue.
- Five children and one adult were killed in the Oklahoma shooting.
- Chloe Bailey cried on IG Live For Being Attacked On Social Media, Rescued by fans.
- Bachchan Pandey to be released on Republic Day
- KGF RETURNS WITH NEW TEASER
- Wonder Woman 1984
Stay Connected with NextNewsUpdate for more such amazing content.