Amazon's stock jumps 6% after its fourth quarter results beat expectations

CEO of Amazon.com, Inc. Jeff Bezos. Photo: Getty Images.

Amazon’s stock jumped as much as 6% after the ecommerce giant topped Wall Street’s fourth-quarter expectations.

The company reported its holiday period results on Thursday afternoon. At the time of writing, Amazon’s stock was up $87.64 a share, or 6.3%, to $1,477.64.

Here’s what the company reported, compared with what analysts polled by Bloomberg had forecast:

  • Revenue: $60.5 billion; analysts were expecting $59.85 billion
  • Amazon Web Services:$5.1 billion; the one analyst who offered an estimate to Bloomberg was looking for $5 billion

  • Earnings per share :

Amazon also shared its guidance for the first quarter of 2018:

    Revenue (Q1 projected): Between $47.75 billion and $50.75 billion. Wall Street had projected $48.7 billion. Amazon posted $35.7 billion in revenue in the first quarter of 2017.
  • Operating income (Q1 projected): Between $300 million and $1.0 billion. Amazon posted $1 billion in operating income in the first quarter last year.
  • Operating income (Q1 projected): Between $300 million and $1.0 billion. Amazon posted $1 billion in operating income in the first quarter last year.

The company’s results showed once again the strength of AWS — and its importance to Amazon’s bottom line. Revenue from the company’s cloud business grew 45% in the fourth quarter from the same period a year earlier. Meanwhile, AWS’s operating income grew 46% to $1.4 billion. That means AWS accounted for 73% of the net income Amazon as a whole posted for the period.

Interestingly, Amazon didn’t discuss Whole Foods, the grocery chain it bought last year, in its earnings release. Some analysts and investors have been wondering how far along the company is in integrating Whole Foods into the rest of its operations.

Business Insider will be continuing to cover Amazon’s results. So hit refresh for the latest details.

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