Amazon (AMZN) Profits doubled to $14.3Billion: Boosted by Rivian Stake.

Amazon (AMZN) reported fourth-quarter profit which smashed expectations in part because of its investment in Electric Vehicle (EV) maker Rivian (RIVN).

The company’s net income nearly doubled last quarter compared to the same period the previous year, in large part because of its investment in Rivian.

The e-commerce giant also announced it will raise its Prime membership fee to $139 per year from $119 in the U.S. The stock is soaring in after-hours.

Since the launch of Amazon Prime, this is the third time that the company announces a fee hike for its yearly delivery service in the U.S. It raised fees in 2014 and 2018 by $20 each time.

The announced price change will go into effect for new members on February 18th. Existing members will see the fees upon their renewal date after March 25.

The earnings and revenue results for Amazon’s fourth-quarter $14.3 billion in net income compared to $7.2 billion during the last three months of 2020.

Chart for Amazon Inc.

The Net sales increased 9% to $137.4 billion in the fourth quarter, compared with $125.6 billion in the same period last year.

The Big tech names have been in the spotlight this week after a blowout quarter from Alphabet (GOOGL, GOOG), Apple (AAPL),  and Microsoft (MSFT).

Moreover, the Communications Services stocks took a beating on Thursday following Meta’s (FB) disappointing quarter.

Written by Maryam Nawaz

MPhil International Relations (Specialization in International Politics and Economy)

Leave a Reply

Your email address will not be published. Required fields are marked *

Gannett Shares rose as much as 11.5%

Digital World Acquisition Corp (DWAC) Stocks are trending – Here’s why?