Amazon one of the best companies stood strong with 4Q result, even in the period of pandemic supply chain complication, amazon made their way in pandemic as well. The company reported a profit of US$14.32 billion, or US$27.75 per share, for the three-month period.
Amazonâ€™s profit nearly in the fourth quarter doubled, beating analystsâ€™ expectations as the online giant continues with surging costs which is tied to disordered the supply chain and labour shortages in New York.
Seattle based Amazon company raised its annual prime membership fee on Thursday to US $139 each year from US $119. Since 2018 Amazon over the years for the first time raised the price of Prime membership.
Amazon which is based in Canada representative Andrew Gouveia said the price rise announced, only for the Prime users who are from U.S. .Amazon shares spiked around 15- 17 percent in after-marketing trading.
Amazon CEO Andrew Jassy said, we saw a higher cost driven by labour supply shortage and inflationary pressures in first quarter due to omicron.
Pandemic impact on Amazonâ€™s supply-chain.
As expected over the holidays, we saw a higher cost driven by labour supply shortage and inflationary pressures and these issues persisted into the first quarter due to omicron. Despite these short-term challenges, we continue to feel optimistic and excited about the business as we emerge from the pandemic, said by Amazon CEO Andrew Jassy, last July the new founder and Chairman of Amazon became Jeff Bezoz.
During Covid-19 Amazon became one of the few retailers that has flourished. During these times as physical stores selling non-essential goods for temporarily or permanently close, homebound people or who shops online turned towards Amazon for everything from clean supplies, food and groceries product.
The growth slowed when Americanâ€™s started getting vaccinated and felt comfortable to buy from outside. The company like others, dealt with global supply chain issues and shortage of workers.
Amazon company raised its annual prime membership fee on Thursday to US $139 each year from US $119.
Amazon acquired about US $4 billion in cost related to supply chain issues and labour worker issues. Brian Olsavsky , Amazon chief financial officer said, the surging omicron variant is resulting to impact workers, as in getting sick, hurting productivity.
As the company reported a value gained of US$14.32 billion, or US$27.75 per share, for the three-month period. That compared with a profit of US$7.22 billion, or US$14.09 per share, during the year-ago period. Revenue has increased around nine per cent to US$137.41 billion, the companyâ€™s fifth consecutive quarter of revenue topping US$100 billion. FactSet analysts surveyed on average predicted $137.68 billion in quarterly revenue and earnings by per-share is of $3.61.
This period Amazon sales are expected to be between $112 billion and $117 billion for the current quarter, said by Amazon. Analysts were expecting nearly $120.93 billion, according to the FactSet prediction.
Amazon acquired about US $4 billion in cost related to supply chain issues and labour worker issues.
Currently, Amazonâ€™s sales for cloud- computing business provides the help to power the Netflix, McDonaldâ€™s and other companies raised 40%.
On other side sales in itâ€™s advertise business, brands pay to get their products to show up first, when shoppers search it on Amazon site, it rises up to 32%. Amazon even revealed for the first time about its fast-growing advertising business. Though earlier on it combined its advertising revenue in its other business category.