Amazon Earnings Report: Strong Sales and Profitability Drive Growth

TLDRAmazon's fourth-quarter earnings report showcases better-than-expected earnings per share of $1 and net sales of $170 billion, beating estimates. Key highlights include a significant rise in Amazon Web Services (AWS) revenue by 133% and a positive sales forecast for the first quarter. The company's strong profitability, with an operating margin of 7.8%, contributes to investor optimism.

Key insights

💰Amazon's earnings per share of $1 exceeds expectations, indicating strong financial performance.

📈Amazon Web Services (AWS) revenue increases by 133% in the fourth quarter, demonstrating significant growth in the cloud computing business.

🔮The first-quarter sales forecast of $138 billion to $143.5 billion shows promising growth potential.

🌐Amazon's international net sales reach $166.2 billion, surpassing estimates and reflecting global demand.

🍎Physical stores, such as Whole Foods, fall slightly short of estimates with sales of $5.15 billion.

Q&A

What were Amazon's earnings per share in the fourth quarter?

—Amazon reported earnings per share of $1 in the fourth quarter, surpassing expectations for financial performance.

How much did Amazon's net sales amount to in the fourth quarter?

—Amazon achieved net sales of $170 billion in the fourth quarter, exceeding estimates and indicating strong demand for its products and services.

What is the growth rate of Amazon Web Services (AWS) revenue in the fourth quarter?

—Amazon Web Services (AWS) experienced a remarkable growth rate of 133% in revenue during the fourth quarter, highlighting the success of its cloud computing business.

What is the sales forecast for Amazon in the first quarter?

—Amazon projects sales of $138 billion to $143.5 billion in the first quarter, demonstrating a positive outlook for future growth.

How does Amazon's physical store sales compare to estimates?

—Sales from physical stores, primarily Whole Foods, slightly missed estimates, totaling $5.15 billion in the fourth quarter.

Timestamped Summary

00:00Amazon reports fourth-quarter earnings per share of $1, surpassing expectations.

00:13Amazon Web Services (AWS) revenue grows by 133% in the fourth quarter, outpacing estimates.

00:36Amazon's net sales reach $170 billion in the fourth quarter, indicating strong demand.

01:06First-quarter sales are projected to be between $138 billion and $143.5 billion, demonstrating expected growth.

01:25Sales from physical stores, including Whole Foods, fall slightly short of estimates at $5.15 billion.

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