Amazon shares climb up to 9% in the fourth quarter. The company climbed up to a quarter of $12 billion with its investment in Rivian. Rivian deals in electric vehicle companies.
Amazon shares pop up by 14% in trading alone. It is one of the biggest gains for the company since 2012. The earnings per share struck up to $5.80, while the expectation was $3.57. The revenue generation was $137.4 billion. The expected revenue generation was $137.6. A definitive survey of analysis posted the figure.
Amazon’s operational profit in the first quarter may range between $3 to $6 billion. The fourth quarter sale tends to grow 9.4%. It also ended up recording single-digit growth in 2017. Amazon gave assurance to the investor about the recovery. The market suffered a lot from the dripping of Facebook’s shares.
The company came up with interesting figures in advertising. Amazon’s advertising services grew by 32% year. It accounted for $9.7 billion. The advertising was part of the “other” business segment. Brain Olsavsky called it a driven value.
With success in advertising, the company also attracted ad dollars. It now holds third place after Google and Facebook. Google records $61.2 in its fourth quarter. And, the Facebook ad dollars stand at $32.6 billion currently.
The biggest gain in Amazon shares came from electric vehicle makers’ IPO. It gained $27.75 for the quarter. The IPO priced at $78 per share and values the company at $66.5 billion. The stock climbs up to $172 at its peak. It fell down to $60. The Rivian share grew 3%, extended trading on Thursday.
Andy Jassy, Amazon CEO, states that “the pandemic continues to pose challenges. Facing a tight labor market, Amazon last year hiked wages to an average of $18 an hour to lure workers and has increased incentives, offering signing bonuses worth as much as $3,000 in some markets.”
The company’s cloud computing business accounted for 40%. It accounts for $17.78 billion currently.