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Amazon Earnings: Stock Climbs As E-Commerce Giant Beat Expectations
Amazon Earnings: Stock Climbs As E-Commerce Giant Beat Expectations
Strong Online Sales And Cloud Computing Drive Results
Amazon reported strong earnings for the fourth quarter of 2023, beating analyst expectations. The e-commerce giant's stock climbed in after-hours trading on the news.
Key Takeaways
- Amazon's net sales increased 9% to $149.2 billion in the fourth quarter, beating estimates of $145.4 billion.
- The company's online stores grew 13% to $96.3 billion, driven by strong sales in North America and Europe.
- Amazon Web Services (AWS), the company's cloud computing business, grew 20% to $21.4 billion.
- The company's net income rose 22% to $30.3 billion, or $5.93 per share, above estimates of $5.67 per share.
- Amazon's stock rose 4% in after-hours trading following the earnings report.
Strong Online Sales
Amazon's online stores continued to perform well in the fourth quarter, with sales growing 13% to $96.3 billion. This growth was driven by strong sales in North America and Europe, which offset a decline in sales in China.
Amazon's Prime membership program continues to be a key driver of growth for the company. Prime members spend more money on Amazon than non-members, and they are more likely to shop frequently.
AWS Growth Continues
Amazon Web Services (AWS) continued to be a major growth driver for the company, with revenue growing 20% to $21.4 billion in the fourth quarter. AWS is the world's leading cloud computing platform, and it is used by businesses of all sizes to power their operations.
AWS is a key part of Amazon's strategy to grow its enterprise business. The company is investing heavily in AWS, and it is expanding its offerings to meet the needs of businesses of all sizes.
Outlook
Amazon is optimistic about its future prospects. The company expects to continue to grow its online retail business, and it is investing heavily in AWS to capitalize on the growing demand for cloud computing services.
Amazon is facing some challenges, including rising costs and increasing competition from other retailers. However, the company is well-positioned to continue to grow in the future.