The group is one of the winners in the tech sector.
(Photo: AP)
Seattle The world’s largest online retailer, Amazon, posted a jump in profits at the end of the year thanks to high special proceeds. In the final quarter, the surplus almost doubled year-on-year to $14.3 billion, as Amazon announced on Thursday after the US stock market closed. Sales increased 9 percent to $137.4 billion.
The main reason for the strong increase in profits was Amazon’s stake in the electric car manufacturer Rivian, from which the group benefited greatly when it went public in November. Amazon’s operating income fell by almost half to $3.5 billion. However, the stock shot up more than 15 percent in after-hours trading.
Three months ago, Amazon had already warned investors of additional billions in expenditure due to higher wages, global problems in the supply chain and increased freight costs and had adjusted to relatively meager numbers. For the current quarter, the company expects sales growth of between three and eight percent.
The group also announced that it would be raising prices for its “Prime” service in the United States for the first time since 2018, which offers access to free shipping and streaming services, among other things. The service will be significantly more expensive: from February 18, new US customers will pay $14.99 instead of $12.99 per month and $139 instead of $119 per year.
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In the US, the price for Prime was last increased from $99 four years ago. “It’s about time,” said expert Michael Pachter from Wedbush Securities before the publication of the quarterly figures, referring to the higher transport costs. In the US, a majority of households use Prime, and there are more than 200 subscribers worldwide.
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