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Topline
Amazon surpassed revenue expectations and posted a large net income jump in its fourth-quarter earnings report Tuesday, sending its stock up more than 9% in after-hours trading.
Amazon has laid of tens of thousands of workers since 2022. (Photo by Artur Widak/Anadolu Agency via … [+]
Key Facts
Amazon reported $170 billion in revenue in the fourth quarter, 14% more than the $149.2 billion reported in the same period last year and coming in above the roughly $166 billion analysts were forecasting, according to FactSet.
Net income jumped to $10.6 billion, or $1 per share, compared to $300 million one year ago and above average analyst expectations of $0.80 per share.
The e-commerce giant reported revenue of $574.8 billion and net income of $30.4 billion in 2023, a 12% jump in revenue and a massive increase in net income from 2022, when it reported a net loss of $2.7 billion.
Amazon shares, which closed at $159.28 on Thursday, rose more than 9% in after-hours trading following the earnings report’s release and reached as high as $174.71.
Valuation
Amazon founder Jeff Bezos is worth an estimated $181.8 billion, according to ’ estimates. He owns a little less than 10% of the company.
Tangent
Amazon and Roomba-maker iRobot announced this week an agreement to terminate their previously announced acquisition deal valued at about $1.7 billion. In a joint statement, the companies said the failed deal had “no path to regulatory approval in the European Union.”
Key Background
Following a solid year of growth, Amazon’s stock is separating itself from an abysmal 2022 and closing in on its 2021 all-time high, when it traded as high as $175.35 on a split-adjusted basis. The company has introduced cost-cutting measures in the form of layoffs amid its stock recovery. More than two weeks ago, the company cut around 500 employees from Prime Video, MGM Studios and the company’s popular livestreaming platform Twitch. The company has let go of 27,000 workers since late 2022 to compensate for overhiring done during the peak of the Covid-19 pandemic, according to the New York Times.
Further Reading
Okta, Block, PayPal Cut Hundreds Of Jobs—Here Are 2024’s Tech Layoffs ()
Amazon Is Laying Off Hundreds Of Twitch, Prime Video And MGM Studios Employees ()
