AMAZON FINANCIAL RESULTS NEWS

Amazon's net income increased 99% to US $ 5,243 million in the second quarter of 2020, or US $ 10.30 per diluted share, compared to net income of US $ 2,625 million, or US $ 5.22 per diluted share, in the second quarter of 2019.

During the second quarter of 2020, Jeff Bezos' company net sales increased 40% to $ 88.9 billion in the second quarter, compared to $ 63.4 billion in the second quarter of 2019. Excluding the unfavorable impact of $ 582 million From changes in exchange rates, net sales increased 41% compared to the second quarter of 2019.

"Unsurprisingly, we spent more than $ 4 billion in incremental costs related to covid-19 virus in the quarter to help keep employees safe and deliver products to customers in this time of high demand and paying a special bonus of more than $ 500 million thanks to frontline employees and delivery partners" - explained Jeff Bezos, Amazon CEO.

During the quarter, Amazon created more than 175,000 new jobs and is in the process of bringing 125,000 of these employees to regular full-time positions. In addition, it reported that in the quarter it invested US $ 9,000 million in capital projects, including fulfillment, transportation and Amazon Web Services.

Following these results, the company expects net sales for the third quarter between US $ 87,000 million and US $ 93,000 million, or that they will grow between 24% and 33% compared to the third quarter of 2019.

Additionally, it expects an operating profit of between US $ 2 billion and US $ 5 billion, compared to US $ 3.2 billion in the third quarter of 2019. This guide assumes more than US $ 2 billion of costs related to covid-19 virus.

a) Estimate Amazon Net Profit for 2020 and its growth level with respect to 2019, considering what is mentioned in the article. Make the assumptions that are necessary (for example: incremental costs) and analyze at least 2 financial scenarios.

b) Estimate the value of Amazon's total equity once these figures were released to the market if the share price is known to have exceeded $ 3,000. Explain your reasoning and estimation parameters.