Amazon’s $191 Billion Jump Sets Record for Market Value Gain, a day after the Meta Saga

  • The stock’s 14% gain leads to biggest daily U.S. value surge

The surge added about $191B in market value

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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!

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I notice a dangerous trend - isn’t most of the 4Q earnings is caused by Rivian IPO??

4Q earnings: $14.3B = $27.75ps
Rivian’s share (Valuation Gain): $11.8B is pre-tax
Now, the bigger picture excluding Rivian but with taxes:

[(14.3B-11.8B)/14.8B] * 27.75 = $4.85ps???

It’s just 4.85 per share! I agree M&A and IPO of sister companies add on to the good part but this is just too much!

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Amazon wishes to avoid paying taxes and never make a lot of money. They invest in data centres, fulfilment facilities, electric vehicles, and other infrastructure. It’s the growth measures - cloud, advertising, and sales - that you should be looking at. They’re crushing it.

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Kinda the same w Google as well if you look at the numbers and QoQ earnings…

AWS appears to be the profit generator. In '21, the firm’s operating income was 24.879 billion dollars, while AWS’s operating income was 18.53 billion dollars. The figures for the fourth quarter were even more shocking.

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LOL

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