Amazon Hoovered Up Your Holiday Spending But Barely Turned a Profit - CNET

Trending 9 months ago

Despite plentifulness of shoppers turning to Amazon this vacation season, nan company's profits were little than jolly successful nan last 3 months of 2022. In an net connection Thursday, nan institution reported a steep driblet off.

Amazon's revenues were up 9% from nan 4th fourth of 2021, coming successful astatine $149.2 billion. However, nan e-commerce elephantine posted net of 3 cents per share, down from $1.39 successful nan last 3 months of 2021. This was lower than expert estimates of 17 cents per share, according to Yahoo Finance. 

The results capped disconnected a twelvemonth of promises to investors that Amazon would trim costs created by its much-expanded fulfillment infrastructure and a workforce that doubled from nan commencement of nan pandemic. The institution is now successful nan position of demonstrating that its layoffs of 18,000 people and mothballing of parts of its fulfillment web person put Amazon connected firmer financial ground. CEO Andy Jassy joined a telephone pinch investors, reassuring them that nan institution is "working really difficult to streamline our costs."

"Our relentless attraction connected providing nan broadest selection, exceptional value, and accelerated transportation drove customer request successful our Stores business during nan 4th fourth that exceeded our expectations" Jassy said successful a statement. "We're besides encouraged by nan continued advancement we're making successful reducing our costs to service successful nan operations portion of our Stores business."

Amazon shares were down 3.6%, astatine $109.05, successful caller after-hours trading, aft they'd closed regular trading up much than 7%. Revenues from Amazon's advertizing services -- nan root of each those sponsored hunt results you spot erstwhile looking for a merchandise -- gave other oomph to nan company's sales, increasing faster than wide revenues. Amazon Chief Financial Officer Brian Olsavsky told reporters that nan institution sees this arsenic a "good sign," moreover though nan maturation of Amazon's advertisement business is slowing down.

Amazon's finance successful electrical conveyance shaper Rivian had a antagonistic effect connected its equilibrium sheet, deducting $2.3 cardinal from its nett income. The finance has go a chaotic paper successful nan tally of Amazon's profit. In 2021, Rivian had a valuation gain, boosting Amazon's equilibrium expanse by $11.8 billion. 

The company's operating income, which excludes valuations of Amazon's investments, came to $2.7 billion, a alteration from $3.5 cardinal astatine nan aforesaid clip successful 2021. The costs of severance for labor laid disconnected astatine nan extremity of 2022 sliced disconnected $640 cardinal from nan company's operating income. Olsavsky confirmed Thursday that each laid disconnected labor person been notified.

Source techno