Article: 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) According with article below, project the net profit for the year 2020 for Amazon 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 scenarios.

b) According with article below, now 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.