Amazon has recently announced its fourth-quarter earnings, which greatly surpassed many economists’ expectations, sending Amazon stock up 10% within hours. Though Amazon’s heavy spending throughout the year left many scratching their heads, it turns out excellent service and rigorous planning go a long way. The company, as of now, is worth over $1 trillion.
For instance, though many thought Amazon was in over its head when the company announced it would be pouring money into one-day shipping for Prime members, the results quickly determined their efforts paid off. This is also evidenced through the fact that in the past two years, the company has gained over 50 million Prime members–a true testament to Amazon’s seemingly unlimited capabilities for growth.
In the fourth quarter, Amazon brought in an $87.4 billion revenue. This explosive news certainly has economists talking, particularly praising the tech giant for investing where it counts most. For example, RJ Hottovy, an equity analyst with Morningstar, Inc. said, “This shows how big of a step one-day delivery was in terms of maintaining engagement on its marketplace. The Prime membership number shows they are seeing strong growth internationally.”
In agreeance, Amazon’s Chief Financial Officer Brian Olsavsky said, “What we saw was essentially a very strong holiday performance from the middle of November on. We also had a very big uptick in response to the one-day availability that’s been building through the year.”
Amazon had a fantastic end to its year, making this a fantastic time for Amazon Sellers to thrive.
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