CIG News – Amazon Made It Happen And Gained The $1 Trillion Club Membership. News provided by Benzinga Tech, The tech sector is the category of the markets relating to the research & development and/or distribution of technological based services as well as goods.
With fourth quarter earnings way above Wall Street estimates, e-commerce giant's stock was up more than 10 percent or $203 during after-hours trading on Thursday, January 30th, ultimately reaching market value that is over $1 trillion on Tuesday, February 4. As of 2018, its stock underperformed as investors were concerned about its heightened spending and AWS slowing growth.
But the fifth time was the charm and Amazon.com, Inc. (NASDAQ: AMZN) has now joined Apple Inc (NASDAQ: APL), Microsoft Corporation (NASDAQ: MSFT) and Alphabet Inc's Google (NASDAQ: GOOG) as a fourth member of the $1 trillion club.
Fourth Quarter Earnings
Earnings per share were $6.47, beyond topping expectations of $4.04 per share. Revenue amounted to $87.4 billion exceeding expectations of $86.0 billion. But more impressively, revenues increased 20.8% comparing to last year, and this acceleration is even more impressive when we consider the softer than expected US spending that was released on January 30th by the Bureau of Economic Statistics. AWS delivered by growing 34 percent from the year-ago period, achieving revenue of $9.9 billion, also topping estimates of $9.8 billion.
However, not all is black and white as this growth rate is in fact the weakest since the company started disclosing this information in 2015. Therefore, the intense pressure from competitors, the other tech titans, Microsoft and Google are taking a toll on the once e-commerce emperor.
Blockbuster Quarter Managed To Diminish Poor Forecasts
AWS did the ‘heavy lifting' as it contributed about 67% of the company's operating income of $3.88 billion for …
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