Amazon.com, Inc. (NASDAQ: AMZN) stock rose over 1.8% in the pre-market session of Feb 3rd, 2021 (Source: Google finance) after the company reported earnings of $7.22 billion for the fourth quarter of FY 20 compared to $3.27 billion, in last year’s fourth quarter.
Meanwhile, the company in order to settle charges for not passing on tips to drivers, is going to pay around US$62 million. According to the Federal Trade Commission (FTC), even though it promised shoppers and drivers, AMZN didn’t pass on tips to drivers for more than two years. Further, the company also announced that Jeff Bezos will transition to the role of Executive Chair in the third quarter of 2021 and Andy Jassy will become Chief Executive Officer at that time.
AMZN in the fourth quarter of FY 20 has reported the adjusted earnings per share of $14.09, beating the analysts’ estimates for the adjusted earnings per share of $7.23, according to figures compiled by Thomson Reuters. The company had reported the adjusted revenue growth of 43.6 percent to $125.56 billion in the fourth quarter of FY 20. Operating income rose to $6.9 billion in the fourth quarter, compared to operating income of $3.9 billion in fourth quarter 2019.
Moreover, since the start of the COVID-19 pandemic, the company has incurred more than $5 billion in operational costs on behalf of independent businesses selling in Amazon’s store, and anticipates to invest billions more through 2021. In 2020, Amazon increased square footage across its fulfillment and logistics network by 50%, dedicated 60% of fulfillment center capacity to seller products, and postponed annual selling fee adjustments until June 2021.
The company had launched Amazon Pharmacy in the U.S., bringing prescription medications to customers’ doorsteps. The customers can now browse medications, create a secure pharmacy profile, and request or manage prescriptions on Amazon.com. Prime members can receive unlimited, free two-day delivery on Amazon Pharmacy orders with their membership.
On the other hand, Amazon Music has signed an agreement to acquire innovative podcast publisher, Wondery. Through this acquisition, Amazon Music intends to accelerate the growth and evolution of podcasts by bringing creators, hosts, and immersive experiences to even more listeners across the globe. Wondery is expected to be able to provide more high-quality, innovative content, continuing their mission of bringing a world of entertainment and knowledge to their audiences, wherever they listen. The acquisition is not yet closed and is subject to customary closing conditions.
In addition, AWS continued to expand its infrastructure footprint around the world, by announcing the AWS Asia Pacific (Hyderabad) Region, to be available by mid-2022, and the AWS Europe (Zurich) Region and AWS Asia Pacific (Melbourne) Regions, to be available in the second half of 2022.