Technology

Amazon post record sales; The cost of Amazon Prime is increasing

The economy is improving and a persistent virus is starting to weigh on Amazon’s retail business, as its cloud business grows and an investment increases profits.

The company was profitable, the number of employees and the stock price skyrocketed two years before Covid forced people to stay at home, say on Thursday that its operating income for Q4 fell to $3.5 billion, about half of the $6.9 billion it earned in Q4 2020.

However, net income, which is also expected to decline, has increased sharply due to what Amazon calls “pre-tax valuation profit” in the year. Rivian Automotive, an Amazon investment that went public in the fourth quarter. Amazon owns about 20% of the electric vehicle maker. Net income increased to $14.3 billion, from $7.2 billion a year ago.

That gave Amazon shares a big boost in after-hours trading, quickly pushing them up about 17%. During the usual course of trading, when investors worried about what was to come, the stock fell 8%.

Andy Jassy, ​​chief executive officer of Amazon, said: “As expected during the holidays, we saw higher costs due to labor shortages and inflationary pressures. and these problems continued in the first quarter due to omicrons,” Andy Jassy, ​​Amazon’s chief executive officer, said in a statement.

Amazon controls about 40% of the e-commerce market and still had a lot of demand in the quarter, consistently the biggest of the year. Revenue rose to a record $137.4 billion, just slightly below what analysts expected.

AWS, Amazon’s cloud division, delivered impressive performance as usual, with operating income up 49%.

To make up for the increased costs, Amazon says it is increasing the annual price of its Prime shipping club to $139, from $119. The company said it was the first increase since 2018.

https://www.nytimes.com/2022/02/03/technology/amazon-earnings-prime-membership.html Amazon post record sales; The cost of Amazon Prime is increasing

Fry Electronics Team

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