Amazon investors told to ‘take a seat’ as demand jumps

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Amazon sales surged in the first three months of the year, as the coronavirus lockdown boosted demand for the firm’s groceries, online market and cloud computing services.

Sales in the quarter jumped 26% year-on-year and the firm said they could rise another 28% in the next.

But the internet giant warned investors the gains won’t translate into profits.

It said it would spend roughly $4bn (£3.2bn) on coronavirus measures through June.

That includes increasing spending on worker pay and safety precautions.

“If you’re a shareowner in Amazon, you may want to take a seat because we’re not thinking small,” said Amazon’s chief executive Jeff Bezos.

“I’m confident that our long term-oriented shareowners will understand and embrace our approach.”

Investors anticipating a boost have sent Amazon shares up 30% this year.

• Find out how Bezos built his data machine