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Amazon crosses $1 trillion after crushing holiday sale

Amazon reports big earnings, crosses $1 trillion again after crushing holiday quarter with $87.4B in revenue.

Amazon is the world’s largest online retailer and a prominent provider of cloud services. It was initially a bookseller however it has evolved to market a wide range of consumer goods and digital media, as well as its own electronic devices.

Today, Amazon released its final quarterly earnings report for the 2019 fiscal year, and investor reaction to a largely positive report detailing huge holiday sales and AWS results propelled the firm’s market cap over $1 trillion.

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Amazon Holiday Sale (Credits: amazon.com)

Amazon shares soared by as much as 11% after investors shared the earnings report, bringing the company’s market cap above the $1 trillion thresholds. Many $1 trillion-or-bigger tech firms include Apple, Microsoft, and Alphabet, placing Amazon at an exclusive top tier

Amazon told investors it generated sales of $87.4 billion during the fourth quarter of its 2019 fiscal year. Investors were impressed with today’s’ quarter due to the 21% increase in sales compared to the same quarter last year.

Recently, Amazon lost its bid to Microsoft for a major government contract (Project JEDI), worth around $10 billion, heating the race between the two platforms. Google Cloud Platform is an important competitor, too.

Jeff Bezos, CEO and founder of Amazon, has announced that they have more than 150 million Amazon Prime members globally.

Amazon Prime is a membership program that gives users unlimited fast shipping, such as Free Two-day shipping to a street address in the contiguous U.S., on all eligible purchases for an annual membership fee of $79.

In addition to that, the continued growth of Amazon Web Services (AWS) resulted in a 34% year-over-year increase in sales for a total of $9.95 billion in revenue during the quarter. That said, some investors on the earnings call raised concerns that Amazon’s AWS growth is slowing—Q4 2018 saw a 45 percent YOY increase, a bigger step forward than this Q4 2019—as Microsoft’s Azure gradually gains ground on AWS in the market.

Despite slowing AWS growth, the huge season of holiday sales and still-strong numbers for cloud wowed investors and analysts who expected slightly more modest growth than this quarter ended up reporting. Net revenue increased to $3.27 billion by 8%.

Like Apple earlier this week, Amazon issued an exceptionally wide range of forecasts for the next quarter (between $69 billion and $73 billion), primarily due to uncertainty over the effect of China’s coronavirus health crisis on various aspects of Amazon’s market and operations.

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