Amazon shares surged nearly 12% after the company reported big earnings for Q4, driven by a gain on its investment in Rivian, according to a press release by Amazon on Thursday.
- Fourth-quarter sales expanded 9.4% to $137.4 billion. That’s Amazon’s first period of single-digital growth since 2017.
- Amazon revealed revenue from its fast-growing advertising business for the first time. Advertising services rose 32% YoY to $9.7 billion during the quarter. Initially, Amazon reported advertising revenue in its “other” business segment.
- Amazon’s massive profit gain on Rivian is the result of the EV maker’s IPO in November. Earnings per share, including the Rivian gain, was $27.75 for the quarter.
- Andy Jassy, the CEO of Amazon, stated that the pandemic continues to pose major challenges. Amazon was forced to hike wages to an average of $18 per hour to lure workers and has increased incentives.
The company’s cloud computing business was one of the notable performances. Revenue at Amazon Web Services rose nearly 40% to $17.78 billion, surpassing analysts’ estimates. AMZN up +12.18%, Pre-market trading