- The stock’s 14% gain leads to biggest daily U.S. value surge
The surge added about $191B in market value
Profits in the quarter soared to $14.3 billion, or $27.75 a share, from $7.2 billion, or $14.09 a share, a year earlier.
Amazon’s stock price increased as sales in its cloud computing sector exceeded Wall Street expectations and the firm boosted the price of Amazon Prime subscriptions, allaying some fears about the impact of cost hikes on profitability. These factors eclipsed sales and operational profit predictions for the current quarter, which fell short of expectations.
Amazon CEO Andy Jassy said that the company “as expected” saw higher costs over the holidays, driven by labour supply shortages and inflationary pressures, adding that “these issues persisted into the first quarter” due to the Omicron variant of Covid-19. “Despite these short-term challenges, we continue to feel optimistic and excited about the business as we emerge from the pandemic,” he said.
Tech stocks are like: We go up and we go down!