E-commerce giant Amazon, Thursday, provided numbers for the fourth quarter. The company beat analysts’ estimates on several points.
- Up front, according to Bloomberg, the company was expected to earn $3.77 in the fourth quarter. However, Amazon smashed expectations and ended up with earnings per share of $27.75.
- In the same period last year, earnings per share were $14.09.
- Operating profit closed at $3.46 billion, compared to the $2.43 billion expected.
- Amazon generated $137.4 billion in sales in the fourth quarter. Revenue was expected to be $137.8 billion up front, according to Bloomberg estimates.
- In the previous year, the company’s sales were $125.55 billion.
Amazon shares rose sharply on Wall Street after the numbers were released. At around midnight Norwegian time, the share was up 15 percent.
In the quarterly report, Amazon states that the company will increase the price of its streaming service Amazon Prime. The annual price is set at $139, from $119. Amazon hasn’t raised the price of Prime since 2018.
The company also provided for the first time income from its fast-growing advertising business. Advertising revenue grew 32% year-over-year to $9.7 billion.
CEO Andy Gacy of Amazon. (Photo: Mike Blake/Reuters/File Photo)
This fall, the same company reported revenue of $130 billion to $140 billion in the fourth quarter. Then Amazon CEO Andy Gacy also warned of disappointing results in the fourth quarter, citing increased costs due to labor shortages, increased labor costs, a global supply crisis, and increased freight and freight costs.
Amazon says it expects revenue between $112 billion and $117 billion in the first quarter of 2022. By comparison, analysts estimate it is $120 billion for the first quarter.
Technology stocks go down
On Thursday, many of the most well-known and popular technology stocks experienced sharp declines in the stock market. The technology-heavy Nasdaq index fell 3.7 percent at the close.
Amazon finished down nearly eight percent, but subsequently switched to aftermarket services.
Meta, formerly known as Facebook, had a tough day on Thursday, having reported quarterly numbers on Wednesday after closing time on Wall Street.
The stock has fallen more than 20 percent since the beginning, and after a few hours of trading, the decline has increased. At the close of the exchange, Meta stock closed down 26 percent. This means that NOK 2050 billion has been wiped out of shareholder value.
wild aura growth
The e-commerce giant has been one of the biggest winners in the Corona pandemic, as the need for home delivery and entertainment has skyrocketed.
Since the Corona crash in March 2020, Amazon’s price has risen more than 121 percent to its peak in July 2021.
However, since the new year, the exchange rate has fallen to more than 17 percent.
Amazon is one of the world’s largest companies measured by market capitalization, which on Thursday stood at $1,400 billion, equivalent to more than 12,235 billion Norwegian kroner.
Amazon founder Jeff Bezos announced earlier last year that he was stepping down as Amazon CEO. In July, Andy Gacy, the former head of Amazon Web Services, took over as CEO.
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Bezos has long ruled as the world’s richest person, but was rediscovered again this year by Tesla founder Elon Musk, following his surge in Tesla’s stake.(Conditions)Copyright Dagens Næringsliv AS and/or our suppliers. We would like you to share our cases using a link that leads directly to our pages. All or part of the Content may not be copied or otherwise used with written permission or as permitted by law. For additional terms look here.
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