Amazon shares soar off the back of strong Q4 results

Amazon’s shares rose by 10 per cent in after-hours trading yesterday as the company posted Q4 profits of $3.3bn (£2.5bn) – a 10 per cent year-on-year increase – off the back of revenues of $87.4bn. Amazon’s cloud computing business, Amazon Web Services, delivered revenues of $9.95bn, a 34 per cent year-on-year increase. Net sales for the full year increased 20 per cent to $280.5bn, while full year profits rose to $11.6bn, compared to $10.1bn in 2018.

Amazon founder and CEO Jeff Bezoz revealed that more people joined Amazon’s Prime service in Q4 than ever before, and that the company now had over 150m paying Prime members around the world.

“We’ve made Prime delivery faster,” Bezos said. “The number of items delivered to US customers with Prime’s free one-day and same-day delivery more than quadrupled this quarter compared to last year. Members now have free two-hour grocery delivery from Amazon Fresh and Whole Foods Market in more than 2,000 US cities and towns.” (Amazon previously charged $14.99 a month for this service.) Bezos also noted that Prime members watched double the hours of original movies and TV shows on Prime Video in Q4, compared to last year.

Amazon also revealed that its Amazon Music service now has more than 55m customers worldwide. Collectively, in the US, UK, Germany, and Japan, Amazon Music customers have grown nearly 50 per cent year-on-year; and in newer marketplaces such as France, Italy, Spain, and Mexico, Amazon Music customers more than doubled in 2019. Additionally, Amazon Music Unlimited subscribers grew more than 50 per cent in 2019.