Shares of Amazon Increase After Beating Expectations

Photo by James Duncan Davidson/Flickr

Last Thursday night, Amazon surpassed fourth-quarter expectations with Jeff Bezos, the founder of the company, hailing the Alexa technology of the firm’.

Down on the day, shares rose by six percent during after-hours trading to leave the company worth at approximately $710bn.

The revenue for the three months to December was at $60.5bn as compared with a poll of Thomson Reuters amounting to $59.8bn. Earnings per share were at $3.75, more than double the $1.85 that was forecasted. Sales were higher by 38 percent year-on-year and resulted in a net income more than doubling to $1.9bn.

Bezos, the world’s richest man, gushed at the returns from the voice activity technology of Alexa. He said that projections “were very optimistic, and we far exceeded them.”

“We don’t see positive surprises of this magnitude very often — expect us to double down,” added Bezos.

Russ Mould, the investment director at AJ Bell, stated: “Amazon looks to have the strongest momentum of the three right now but it’s not going to be all plain sailing on the way to the $1 trillion market cap mark and some issues could still make it hard for all three to get there, assuming they ever do.”