(Amazon Inc.) Amazon’s stock rose about 12% on Friday, with investors excited about its cloud revenue which hit $17.8 billion in the fourth quarter, more than estimates of $17.37 billion.
The company’s share was also boosted by a disclosure of $12 billion earnings of investment in electric vehicle startup Rivian.
The company’s net income climbed to $14.3 billion in the fourth quarter or $27.75 per share, up from $7.2 billion or $14.09 per share in the comparable quarter of 2020. FY21 net income was $33.4 billion or $64.81 per share, up from $21.3 billion or $41.83 per share in FY20.
Amazon reported that its net sales in the fourth quarter increased by 9% from the prior year to $137.4 billion. The sales missed the expected $137.6 billion.
The company said that its advertising services grew by 32% in the fourth quarter from the prior year to $9.7 billion.
Amazon also announced that it had increased the price for its Prime membership from $119 to $139. The monthly Prime membership cost also rose from $12.99 to $14.99, effective February 18 for new members and March 25 for existing ones.
The e-commerce giant expects revenue of between $112.0 billion and $117.0 billion in the first quarter of 2022. Operating income is expected to ease to between $3.0 billion and $6.0 billion, down from $8.9 billion in the first quarter of 2021.
AMZN: NASDAQ is up +12.35% on premarket.
