Amazon Stock Soars Following Earnings Release

Amazon Stock Soars Following Earnings Release

Amazon’s (NASDAQ: AMZN) revenue rose 9% during its fourth quarter and the company reported a boost of about USD12 Billion from its investment in electric vehicle company Rivian. The company’s shares climbed 14% during extended trading. If the stock continues to rise on Friday, it would result in the biggest one-day gain since 2012.

The multinational technology company reported earnings of USD5.80 per share, compared to the expected USD3.57 a share. Revenue amounted to USD137.4 Billion, slightly below analysts anticipated USD137.6 Billion.

Additionally, the e-commerce giant announced that it would be raising its Prime membership fee to USD139 per year from USD119, within the U.S. This will be the third time since Amazon Prime’s launch that the company establishes a price hike.

“Fourth quarter 2021 net income includes a pre-tax valuation gain of $11.8 billion included in non-operating income from our common stock investment in Rivian Automotive, Inc., which completed an initial public offering in November,” said the company’s earnings statement.

Amazon’s Web Services division generated USD17.78 Billion in revenue for the quarter, higher than the expected USD17.23 Billion. The company foresees first-quarter revenue to be between USD112 Billion and USD117 Billion. Meanwhile, The Street was anticipating guidance of USD120 Billion.

“As expected over the holidays, we saw higher costs driven by labor supply shortages and inflationary pressures, and these issues persisted into the first quarter due to Omicron. Despite these short-term challenges, we continue to feel optimistic and excited about the business as we emerge from the pandemic,” Andy Jassy, Amazon CEO said in the company’s earnings release.

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