Watch the video to know more about Amazon’s fourth-quarter earnings
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Video Credit: Rumble
Amazon.com Inc’s sales jumped after its one-day shipping program and its shares soared 13% in after-hours trade.
Amazon.com Inc has again entered in the $1 trillion market capitalization club.
Amazon also predicts operating income of up to $4.2 billion in the current quarter.
Atlantic Equities analyst James Cordwell said: “These results and Q1 forecast suggest we’re past the worst in terms of the margin pressure from the one-day shipping initiative.
Also, competitive concerns surrounding AWS have been massively overstated, removing two of the main bear arguments on the stock.”
Amazon now has more than 150 million paid members in its Prime loyalty club and the membership in its Prime loyalty club marked a 50% rise in two years.
Amazon’s fast delivery and its purchase of U.S. grocer Whole Foods Market are the reason customers are preferring to shop from Amazon.
Now, cutting delivery times to one day for Prime members will induce customers to shop from Amazon even more.
Customers mostly prefer Amazon’s one-day shipping over Walmart Inc’s two-day shipping without subscription fees in the status quo.
After the launch of its one-day shipping program and having more than 150 million paid members in its Prime loyalty club, Amazon showed huge profits in its fourth-quarter 2019 earnings.
The e-commerce company reported earnings per share of $6.47 on revenue of $87.44 billion.
Meanwhile, analysts only anticipated EPS of $4.03, according to a consensus estimate cited by CNBC and revenue was expected to grow 19% to $86 billion.
eMarketer Principal Analyst, Andrew Lipsman said:
“Amazon’s increased profits during this quarter in the face of increased costs and competitive pressure in AWS was the real surprise.
Amazon blew all expectations out of the water.”
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