Amazon reports 9% sales increase in fourth quarter and big profit gain on Rivian stake; shares jump
Amazon on Thursday said revenue climbed 9% in the fourth quarter and the company reported a gain of almost $12 billion from its investment in electric vehicle company Rivian. The stock popped more than 16% in extended trading.
- Earnings per share: $27.75
- Revenue: $137.4 billion vs $137.6 billion expected, according to a Refinitiv survey of analysts
- AWS revenue: $17.8 billion vs $17.37 billion expected, according to StreetAccount
It is not immediately clear if the reported earnings per share are comparable to analyst estimates.
Amazon guided for first quarter revenue of between $112 billion and $117 billion, below the average estimate of $120 billion, according to Refinitiv.
Amazon CEO Andy Jassy, who succeeded Jeff Bezos last year, said the pandemic continues to pose challenges. Facing a tight labor market, Amazon last year hiked wages to an average of $18 an hour to lure workers and has increased incentives, offering signing bonuses worth as much as $3,000 in some markets.
“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,” Jassy said in the earnings statement. “Despite these short-term challenges, we continue to feel optimistic and excited about the business as we emerge from the pandemic.”
Amazon announced in its earnings results that it will raise the price of its annual Prime membership to $139 from $119. The company last hiked the price of Prime in 2018, when it increased from $119 to $99.
The company’s cloud computing business was one notable bright spot. Revenue at Amazon Web Services climbed almost 40% to $17.78 billion, topping analysts’ estimates.
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