Amazon's fourth-quarter profit doubled, and its market value soared by $190 billion in a single day

Recently, Amazon released its fourth-quarter 2021 financial report. On the second day after the report was released, Amazon's market value soared by US$190 billion.

According to the financial report, Amazon's revenue in the fourth quarter of 2021 increased by 9.4% year-on-year to US$137.4 billion , a significant slowdown compared with the fourth quarter of 2020 - Amazon's revenue in the fourth quarter of 2020 was US$125.6 billion, a year-on-year increase of 43.6%.

According to Bloomberg, Amazon's stock price rose 13.54% the day after it released its financial report, marking the largest single-day increase since 2015. The market value increased by more than US$190 billion (about RMB 1.2085 trillion) .

, reaching $1.6 trillion , the largest single-day increase in the history of the U.S. market.

Amazon reported that its net profit in the fourth quarter of 2021 was $14.3 billion, almost doubling its net profit of $7.2 billion in the same period of 2020. Operating profit in the fourth quarter was $3.2 billion, a sharp drop from $6.9 billion in the same period of 2020.

In the fourth quarter of 2021, Amazon's online store (Amazon-operated) had revenue of approximately US$66 billion, a year-on-year decrease of 1%, and third-party seller service revenue of approximately US$30.3 billion, a year-on-year increase of 11%.

For the full year, Amazon's total revenue increased by 22% to US$469.8 billion, with net profit of US$33.4 billion, a year-on-year increase of 56% , and operating profit of US$24.9 billion, a year-on-year increase of approximately 8.7%.

Regarding the most watched holiday shopping season, Amazon said: "Amazon ushered in its largest holiday shopping weekend ever ( Black Friday to Cyber ​​Monday), with apparel, beauty, home and toys being the best-selling categories, and third-party sellers also breaking records during the holidays. More than 130,000 third-party sellers worldwide had sales of more than $100,000."

In addition, Amazon also announced the revenue of its advertising business for the first time in its financial report. In the fourth quarter, Amazon's advertising revenue was US$9.7 billion, a year-on-year increase of 32%, and its revenue for the whole year of 2021 was US$31.2 billion , higher than US$21 billion in 2020. This means that Amazon has become the third largest digital advertising company after Google and Facebook.

At the same time, Amazon also announced that it will increase the price of Prime membership for US users from February 18: the annual fee for Prime members will increase from 119 yuan to 139 US dollars, and for users who pay monthly, the fee will increase from 12.99 US dollars to 14.99 US dollars. Amazon said that the reason for the price increase is the continued expansion of Prime membership benefits and the increase in wages and transportation costs.

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