Amazon Posts Huge Profit Gains in Q4 Earnings Report, Stock Soars Nearly 14%
After the company reported 9% revenue growth and a gain of almost $12 billion from its investment in electric vehicle company Rivian during the fourth quarter, Amazon’s shares rallied as much as 14% in extended trading (via CNBC).
The e-commerce giant also disclosed revenue from its fast growing advertising business for the first time. Advertising services grew 32% year over year to $9.7 billion during the quarter. Previously, Amazon included advertising revenue in its “other” business segment.
“It had been the majority of other revenue,” Amazon CFO Brian Olsavsky said on a call with reporters. “We’re very happy with ad growth. It continues to drive value.”
Below are the key numbers from Amazon’s Q4 2021 earnings report:
- Earnings per share (adjusted): $5.80 vs $3.57 expected, according to a Refinitiv survey of analysts
- 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
Amazon CEO Andy Jassy, who succeeded Jeff Bezos last year, said in the earnings statement, “we continue to feel optimistic and excited about the business as we emerge from the pandemic.”