Amazon sets record for single-day market value growth

by time news

Online retailer Amazon posted the biggest gain in market value in a day among US companies. The company’s capitalization on February 4 increased by $191.3 billion, writes The Wall Street Journal.

Amazon shares rose almost 14% on February 4. Such growth for the company was a record for almost seven years. The online retailer outperformed Apple, whose market value increased by $181.3 billion in a single day a week ago.

Amazon released its fourth quarter 2021 financials ahead of the stock price hike. According to the company, net income rose from $7.2 billion to $14.3 billion, while revenue grew by 9% year-on-year to $137.4 billion. Earnings per share increased from $14.09 to $27.75.

Amazon recorded its biggest single-day gain in market value the day after Meta’s stock crashed 25%. The company’s market value fell to $676.4 billion from about $900 billion the day before. Meta published the first financial report after the rebranding, which fell short of analysts’ expectations. Despite a 20% increase in revenue in the fourth quarter of 2021, the company’s net income decreased by 8% compared to the same period in 2020. Earnings per share decreased by 5% to $3.67 vs. expected $3.84.

Jeff Bezos’ company has the potential to benefit from both the global e-commerce growth and growing demand for cloud computing, online advertising, connected devices and mobile commerce, Bank of America (BofA) analysts said in a January note. Among the main risks for the company in 2022, analysts identified continuing problems with supply chains and labor, an increase in investment in the creation of new delivery stations to a size exceeding current BofA estimates, increased competition in the local retail market, constant monitoring by regulatory authorities, and others. .

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