Amazon After Jeff Bezos

According to a recent report from eMarketer, despite a challenging year for retail in 2020, worldwide retail e-commerce sales grew 28% with sales exceeding $4 trillion. Total worldwide retail sales declined by 3% during the year and economies worldwide are facing recessionary conditions. But the pandemic and lockdown conditions have accelerated the spread of e-commerce. Growth is expected to continue even in 2021, albeit at a slower pace. Amazon (NASDAQ: AMZN) recently reported its fourth-quarter results that clearly benefitted from this growth.

Amazon’s Financials

Amazon’s fourth-quarter revenues grew 44% to $125.56 billion, ahead of the market’s forecast of $119.7 billion. Net income of $14.09 per share was significantly higher than the Street’s forecast of $7.23 per share.

By segment, net product sales grew 13.1% to $57.1 billion and net service sales increased 47.7% to $54.5 billion.

North American sales grew 40.4% to $53.7 billion, while international sales grew 57.3% to $37.5 billion.

Amazon ended the year with revenues growing 38% to $386.1 billion. Net income increased to $21.3 billion, or $41.83 per share, compared with net income of $11.6 billion, or $23.01 per share a year ago.

Amazon expects first-quarter revenues of $100-$106 billion with an operating income of $3-$6.5 billion.

Amazon’s Product Upgrades

During the quarter, AWS announced two smaller new outposts from factors, 1U and 2U servers that provide customers with access to AWS on-premises in small locations, such as branch offices, factories, hospitals, cell towers, and retail stores. It also announced the general availability of its product EC2 P4d instances, accelerated computing instances that are powered by NVIDIA A100 Tensor Core GPUs, and AWS petabyte-scale networking. It provides up to 3x faster training time and is 60% less expensive than the previous generation instances for machine learning training and high-performance computing in the cloud.

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Disclosure: All investors should make their own assessments based on their own research, informed interpretations and risk appetite. This article expresses my own opinions based on my own ...

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