Amazon almost doubled its profits in the last three months of 2021

The Amazon profits during the last three months of 2021 almost doubled, despite having to deal with difficulties such as rising costs related to labor shortages in some of its markets and supply chain problems. In that period, the company had a profit of 14,320 million dollars, as well as a profit of 27.75 dollars per share, compared to a profit of 7,220 million dollars in the same period of 2020, when its shares experienced a gain of 14 $.09.

Amazon’s October-December revenue, on the other hand, rose 9% to $137.419 million, making the quarter the fifth in a row that the company’s revenue exceeded 0 billion. ( It will probably not be the last, since for the current quarter Amazon expects to enter between 112,000 and 117,000 million dollars. For all of 2021, the company increased its sales revenue by 22% to $469.8 billion.

Sales from its cloud division, AWS, rose 40% in the quarter, while ad sales from its advertising division rose 32%. It is the first time that Amazon offers details of its business area dedicated to the sale of advertising, since until now it included its figures within the category “Other divisions”.

In addition to its figures, Amazon has confirmed that it is preparing to raise the prices of its Prime program in the United States, which will go from an annual cost of $119 to $139. It is the first time that Amazon has raised the price of Prime in the United States since 2018, something that many attribute to the broadcast of an NFL game every day, something that does not affect the rest of the countries.

It may also be due to the costs of some audiovisual productions that you are preparing, and especially the costs related to transport and those derived from supply chain problems. It is unknown if the company has plans to raise its price in other countries, so we will have to wait to find out.

The Amazon CEO Andy Jassy what happened to the creator of the company, Jeff Bezos, when he became CEO in July, has highlighted that «As we expected in the holidays, we have seen higher costs driven by labor shortages and inflation pressures, and all of these issues persisted as early as the first quarter for omicron. Despite these short-term challenges, we remain optimistic and excited about the company as we emerge from the pandemic.«.

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