AMD Stock

Is AMZN stock Accelerate After Recent Trade?

Amazon.com, Inc. (AMZN) stock price raised higher to $3,158.71, with a gain of 0.19% on Monday. However, the stock further increased 0.23% during the after-market on Monday.

Amazon released its Q4 earnings of $14.3 billion, or $27.75 a share, late Thursday after the shares had already dropped. Due to the news, AMZN stock exploded by almost 14% during market trading on Friday. However, Amazon predicted it could be harder to generate profit in the holiday season because of massive spending bound to supply-chain and staffing issues, plus its attempt to improve Prime delivery service times. however, surpass its forecast with a $3.5 billion operating profit.

Amazon earnings

Amazon disclosed quarterly advertising revenue of $9.72 billion over the holidays, up 32% from a year ago and 27% sequentially. For the full year, Amazon recorded ad revenue of more than $31 billion, with $11.8 billion attributed to the company’s investment in Rivian. Sales grew to $137.4 billion from $125.56 billion the year before.

Amazon also increases the price of its Prime subscription service for the first time in four years from $139 a year to $199, or $14.99 a month to $12.99. In addition, the e-commerce and the cloud-computing giant is hiking the price of its Amazon Prime membership by nearly 17%.

Conclusion

Amazon.com, Inc. (AMZN) reported Q4 sales grew 9% year over year, a 49% drop in operating profits for the quarter, and a 27% reduction in operating cash flow. For the year, sales increased 22%, but operating profits grew only 9%, and operating cash flow was down 30%.

Analysts on average expected Amazon to report $3.61 in earnings, despite a forecast that said a break-even quarter from an operating standpoint as possible. The deluge in amazon stock price came after sales in its cloud computing business, and the raised the price of Amazon Prime subscriptions.

The higher cost of Prime will contribute much to Amazon’s Q1 2022 earnings. Management noted that it’s expecting to see sales up 3% to 8% year over year in Q1 2022 from $112 billion to $117 billion in revenue. However, operating income will remain depressed without support from higher prime prices to $3 billion to $6 billion

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