Foreign media: the revenue of cloud computing soared, the investment in electric vehicle enterprises doubled, and Amazon’s share price took off in situ


February 5 news: on Thursday, local time, retail giant Amazon announced the fourth quarter financial report of 2021. Data show that thanks to the soaring revenue of AWS cloud computing business and huge profits from investing in rivian, an electric vehicle start-up, the company’s share price soared. Analysts expect that if the stock can maintain this rise on Friday, it will create the largest one-day rise since 2009.
Despite weaker than expected sales data and disappointing performance guidelines, Amazon has given investors enough confidence that growth will resume. This is very different from the market’s response to the results released by social media company Facebook on Wednesday. The company’s performance and expectations were worse than expected, resulting in the largest decline in the company’s share price in history.
In the fourth quarter, Amazon cloud computing business AWS was a significant bright spot, with revenue reaching US $17.8 billion, a year-on-year increase of nearly 40%, exceeding analysts’ expectation of US $17.37 billion. The fourth quarter operating profit of the Department was $5.29 billion, an increase of nearly 49%, much higher than the consensus of analysts of $4.84 billion. The performance of this 15-year-old market leader in remote computing, storage and database services highlights the continuous transfer of traditional data center infrastructure by enterprises, schools and governments.
More than half of AWS’s revenue may come from EC2, which is one of the company’s earliest products, providing basic virtual machines in the form of examples used by third-party developer applications. On Thursday, Amazon released a new EC2 instance adoption index, which runs on its own semiconductor rather than AMD or Intel chips. Amazon said that 48 of the 50 EC2 customers who have used the most are using AWS based arm graviton2 chip, which provided a preview for the first time in December 2019.
This quarter, AWS launched a series of new services at the “reinvent conference” in Las Vegas, including a tool that customers can use to manage private 5g networks. It also launched a data center area in Indonesia. But last December, a series of failures occurred in AWS, which brought trouble to coinbase, Disney +, slack and other online services.
In addition, Amazon’s investment in rivian also made huge profits. The electric vehicle manufacturer made an initial public offering (IPO) last November. At that time, the listing price was $78 per share and the company was valued at $66.5 billion. The stock once climbed to a high of $172 per share, but then fell back to about $60. Rivian’s shares rose 3% in after hours trading on Thursday. Amazon invested more than $1.3 billion in rivian and held 22.4% of the company’s class A shares before rivian’s IPO.
Amazon also disclosed its fast-growing advertising revenue for the first time. Advertising services grew 32% year-on-year in the quarter to $9.7 billion. Previously, Amazon incorporated advertising revenue into its “other” business unit. Brian olsavsky, Amazon’s chief financial officer, said in a telephone interview with reporters, “this is a major part of other revenue. We are very happy with the growth of advertising, which will continue to drive value growth.”
Although advertising has always been regarded as an insignificant business of Amazon, the company has achieved great success in attracting advertising funds. At present, it ranks third in the U.S. market, second only to Google and Facebook. Google reported advertising revenue of $61.2 billion in the fourth quarter, compared with Facebook’s advertising sales of $32.6 billion in the same period.
Amazon is the last large technology company to announce its earnings. The results of this earnings season are like a roller coaster. Netflix kicked off in a disastrous way, but the number of subscribers did not meet expectations. Followed by Microsoft, apple and Google’s parent company, alphabet, whose performance exceeded expectations, all before Facebook released disturbing data.
The novel coronavirus pneumonia continued to pose challenges as Geoff, the successor to Jeff Bezos, became chief executive Andy Jaci last year (Andy Jassy). Facing the tight labor market, Amazon raised its average hourly salary to $18 last year to attract employees and increased incentives to provide up to $3000 signing bonuses in some markets.
Jasi said in the financial report: as expected during the holiday season, affected by the outbreak of Omicron virus, labor supply shortage and inflationary pressure drive up costs, which will continue until the first quarter of 2022. Despite these short-term challenges, we continue to be optimistic and excited about our business as we gradually get out of the epidemic. ”
At the same time, Amazon also raised the price of prime members for the first time in four years. The company said it would increase the annual fee of prime members from $119 to $139 and the monthly fee from $12.99 to $14.99. The price adjustment will take effect from February 18 for new members and from March 25 for existing members. (golden deer)