While profits have remained steady, Amazon's operating costs are higher as it focuses on longterm growth, including its Amazon Care venture, according to a Sept. 23 Seeking Alpha report.
Five things to know:
- Amazon is projected to be down $2 billion in profitability in the third quarter as it invests rapidly into expanding Amazon Care, online distribution, satellite broadband, Amazon Web Services and department stores.
- Amazon is working to hire 55,000 technical marketing and medical employees. Of those new hires, 40,000 are projected to be in the United States.
- Amazon Care will also need to establish medical care infrastructure to another 17 metropolitan cities. Amazon Care is currently in Washington, D.C., Baltimore and Washington. Amazon Care will offer two services, one virtutal and one in-person. About 40,000 people, mostly employees, use the current services.
- Amazon Care's headquarters is moving from Seattle to Redmond, Washington, along with several other ventures.
- Distribution sites and rapid hiring are expected to cause the biggest ding in Amazon's profitability in 2021. Amazon Care costs are expected to increase in 2022, according to the report.