The retail behemoth impressed markets with Q4 2021 earnings figures
Amazon revealed earnings per share of $5.80, which single-handedly beat the $3.57 expected. Revenue came short of the $137.6 billion mark, at $137.4 billion, marking a 9.4% increase. Also, it was Amazon’s single-digit growth since 2017.
For the first time, Amazon recorded revenue from its fast-growing advertising business. The segment jumped 32% year-over-year to $9.7 billion. Despite being a tangential business for Amazon, it was the third most successful in the US market, behind Google and Facebook.
The cloud computing business was also impressive. Amazon Web Services brought in $17.78 billion in revenue, marking a 40% increase and topping analysts’ estimates.
In the quarter, Amazon raised the price of Prime membership for the first time in four years. The price change will be implemented for new members on February 18 and current members after March 25.
The company expects sales to be as high as $117 billion for the March quarter.
At the moment of writing, Amazon’s stock price was trading more than 12% higher.
Sources: barrons.com, cnbc.com
This information is prepared for general circulation. It does not regard to the specific investment objectives, financial situation or the particular needs of any recipient.
You should independently evaluate each financial product and consider the suitability of such a financial product, by taking into account your specific investment objectives, financial situation or particular needs, and by consulting an independent financial adviser as needed, before dealing in any financial products mentioned in this document.
This information may not be published, circulated, reproduced or distributed in whole or in part to any other person without the Company’s prior written consent. Past performance is not always indicative of likely or future performance. Any views or opinions presented are solely those of the author and do not necessarily represent those of za.capex.com
JME Financial Services (Pty) Ltd trading as ZA.CAPEX.COM acts as intermediary between the investor and Magnasale Trading Ltd, the counterparty to the contract for difference purchased by the Investor via ZA.CAPEX.COM, authorised & regulated by the Cyprus Securities and Exchange Commission with license number 264/15. Magnasale Trading Ltd is the principal to the CFD purchased by investors.