AMZN stock rose more than 5% in after-hours trading on February 3, 2022, after the company reported impressive Q4 numbers.
Amazon.com Announces Fourth Quarter Results
Amazon.com, Inc. (NASDAQ: AMZN) today announced financial results for its fourth quarter ended December 31, 2021. Amazon reported Q4 EPS of $27.75 with gains vs. $14.09 a year ago. The company reported Q4 revenue of $137.4B versus the consensus estimate of $137.56B. Net income increased to $14.3B in the fourth quarter, or $27.75 per diluted share, compared with $7.2B, or $14.09 per diluted share, in fourth quarter 2020. Fourth-quarter 2021 net income includes a pre-tax valuation gain of $11.8B included in non-operating income from the company’s common stock investment in Rivian Automotive, Inc., which completed an initial public offering in November. EPS consensus $3.58.
“A big thank you to employees across Amazon who overcame another quarter of COVID-related challenges and delivered for customers this holiday season. Given the extraordinary growth we saw in 2020 when customers predominantly stayed home, and the fact that we’ve continued to grow on top of that in 2021, our Retail teammates have effectively operated in peak mode for almost two years. It’s been a tremendous effort, and I’m appreciative and proud of how hard our teams have worked to serve customers,” said Andy Jassy, Amazon CEO. “As expected over the holidays, we saw higher costs driven by labor supply shortages and inflationary pressures, and these issues persisted into the first quarter due to Omicron. Despite these short-term challenges, we continue to feel optimistic and excited about the business as we emerge from the pandemic. When you combine how we’re staffing and scaling our fulfillment network to bring even faster delivery to more customers, the extraordinary growth of AWS with 40% year-over-year growth (and now a $71 billion revenue run rate), the addition of marquee new entertainment like The Lord of the Rings: The Rings of Power and Thursday Night Football, and a plethora of new capabilities that we’re building in areas like Alexa, Ring, Grocery, Pharmacy, Amazon Care, Kuiper, and Zoox, there’s a lot to look forward to in the months and years ahead.”
Amazon also continues to invest heavily in Prime. In the last few years, Amazon has added more product selections available with fast, free, unlimited Prime shipping; more exclusive deals and discounts; and more high-quality digital entertainment, including TV, movies, music, and books. Since 2018, Prime Video has tripled the number of Amazon Originals, rolling out new series and movies like The Boys, The Wheel of Time, Tom Clancy’s Jack Ryan, The Underground Railroad, Sound of Metal, Coming 2 America, The Tomorrow War, and Being the Ricardos. This September, Prime Video will release the highly anticipated The Lord of the Rings: The Rings of Power and become the exclusive home of Thursday Night Football as part of a historic 11-year agreement with the National Football League (NFL). Since 2018 in the U.S., the availability of Free Same-Day Delivery has expanded from 48 metropolitan areas to more than 90, items available for Prime free shipping have increased over 50%, and members have saved billions of dollars shopping Prime Day. This is all on top of new program benefits like prescription savings and fast, free delivery from Amazon Pharmacy and the continually growing Amazon Music for Prime members, Prime Reading, and Prime Gaming. With the continued expansion of Prime member benefits as well as the rise in wages and transportation costs, Amazon will increase the price of a Prime membership in the U.S., with the monthly fee going from $12.99 to $14.99, and the annual membership from $119 to $139. This is the first time Amazon has raised the price of Prime since 2018. For new Prime members, the price change will go into effect on February 18, 2022, and for current Prime members, the new price will apply after March 25, 2022, on the date of their next renewal.
Best Buy selects AWS as preferred cloud provider
On February 3, 2022, Amazon (AMZN) announced that Best Buy (BBY) has selected AWS as its preferred cloud provider for cloud infrastructure services and its strategic partner for developing cloud engineering talent. This collaboration will help Best Buy further apply cloud technology across its retail operations and support the rapid innovation of its customer experiences and the work of its teams to create digital experiences that can enrich the lives of millions.
📺 Amazon shares jump on earnings surprise
📉 AMZN Stock Technical Analysis
Both the long and short-term trends are negative. It is usually better to avoid buying stocks with negative trends. AMZN is part of the Internet & Direct Marketing Retail industry. There are 86 other stocks in this industry. AMZN outperforms 83% of them. Volume is considerably higher in the last couple of days. AMZN is currently trading in the lower part of its 52-week range. The S&P500 Index however is trading in the upper part of its 52-week range, so AMZN is lagging the market.
There is a resistance zone ranging from 3023.87 to 3047.99. There is also a resistance zone ranging from 3175.16 to 3203.08. These zones are formed by a combination of multiple trend lines and important moving averages in multiple time frames. There is also a resistance zone ranging from 3278.37 to 3327.59. This zone is formed by a combination of multiple trend lines and important moving averages in the daily time frame. Finally, there is a resistance zone ranging from 3719.34 to 3731.41. This zone is formed by a combination of multiple trend lines in multiple time frames.
The technical rating of AMZN is bad and it also does not present a quality setup at the moment. AMZN stock has a Setup Rating of 1 out of 10. Prices have been extended to the downside lately. For a nice entry it is better to wait for a consolidation. Click here to sign up for email alerts on when AMZN stock consolidates and has a Setup Rating of 8 or higher.