Amazon.com, Inc. (NASDAQ: AMZN) stock investors are cheering

Free $100 Forex No-Deposit Bonus

Amazon.com, Inc. (NASDAQ: AMZN) stock rose over 8.8% in the pre-market session of 31st January, 2020 (As of 6:46 am GMT-5; Source: Google finance) after the company posted better than expected results for fourth quarter of FY 19, defied its own disappointing forecast and returned to earnings growth in the holiday quarter. The company had reported fourth-quarter profit of $3.3 billion compared to net income of $3 billion in fourth quarter 2018. Amazon spent less than the $1.5 billion he expected for the extra Prime benefits in the fourth quarter, which benefitting Amazon’s profit total. The topline grew due to the Prime additions as well as strong holiday traction. The company’s operating cash flow rose by 25% to $38.5 billion for the trailing twelve months and its Free cash flow increased to $25.8 billion for the trailing twelve months.

Fulfillment by Amazon

AMZN in the fourth quarter of FY 19 has reported the adjusted earnings per share of $6.47, beating the analysts’ estimates for the adjusted earnings per share of $4.04, according to FactSet. The company had reported the adjusted revenue growth of 21 percent to $87.4 billion in the fourth quarter of FY 19, beating the analysts’ estimates for revenue of $86.03 billion. The company’s Amazon Web Services cloud-computing segment was responsible for $2.6 billion in operating profit, which is 67% of Amazon’s total, on revenue of $9.95 billion. The analysts on average had projected operating profit of $2.45 billion, on sales of $9.87 billion, according to FactSet. North American e-commerce sales led to the operating profit of $1.9 billion on sales of $53.67 billion, while international retail operations produced an operating loss of $617 million on revenue of $23.81 billion.

For the first quarter of 2020, Amazon expects the sales to be in the range of $69 billion to $73 billion and operating income is expected to be in the range of $3 billion to $4 billion. The analysts on average were expecting operating profit to be of $4.04 billion on revenue expected to be of $71.63 billion, according to FactSet.

Meanwhile, more people have joined Prime in the fourth quarter than ever before, and the company now have over 150 million paid Prime members around the world. This is due to cut in delivery times in half and free, two-hour grocery delivery was added to the benefits of the membership program. Prime, which used to cost $119 a year or $12.99 a month, had surpassed 100 million members less than two years ago.

Copyright © 2020. All Rights Reserved. FXDailyReport.Com
Risk Warning: Trading CFDs is a high risk activity and you may lose more than your initial deposit. You should never invest money that you cannot afford to lose. FXDailyReport.com will not accept any liability for loss or damage as a result of reliance on the information contained within this website including data, quotes, charts and buy/sell signals. Please be fully informed regarding the risks and costs associated with trading the financial markets.