Amazon stock soars following strong Q4 earnings report

[Shawn Knight]

Amazon shares are soaring after the e-commerce giant announced fourth quarter earnings that smashed expectations.

For the three-month period ending December 31, 2019, Amazon generated $87.44 billion in revenue versus Wall Street analysts’ expectations of $86.02 billion. That’s an increase of 20.72 percent compared to the 72.4 billion the company brought in during the same period in 2018.

Net income checked in at $3.9 billion, or $6.47 per diluted share compared to expectations of $4.03. That’s just slightly better than the $3.8 billion Amazon brought in during the year-ago quarter, but nevertheless, an increase is an increase and that’s reason enough for investors to celebrate.

Share value in Amazon at the end of business on Thursday closed at $1,870.68. On Friday morning, shares were trading at $2,051.46. They’ve tapered down slightly to $2,042.61 as of writing but that’s still a very solid boost of more than nine percent for investors.

Looking ahead to the first quarter of 2020, Amazon said it expects revenue to be between $69.0 billion and $73.0 billion, or 16 to 22 percent more than the first quarter of 2019.

Masthead credit: Amazon packages by Pixavril

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https://www.techspot.com/news/83807-amazon-stock-soars-following-strong-q4-earnings-report.html

 

[Uncle Al]

Yeah, but if they want more investment to spend they seriously need to look at a 20 for 1 stock split to let the smaller investors get into it ..... and having a dividend wouldn't be a bad idea either ....

 

[KG363]

Yeah, but if they want more investment to spend they seriously need to look at a 20 for 1 stock split to let the smaller investors get into it ..... and having a dividend wouldn't be a bad idea either ....

Having a dividend would be a bad idea. Amazon is still growing and heavily reinvesting its earnings and a dividend hampers that. Dividends are great for propping up stock values in mature firms but would be a signal to investors that future growth will be subdued and could actually lead to a drop in stock price.

 

[OortCloud]

If they ride their employees a little harder maybe they could squeeze another percentage point out of that dividend? Those new yachts and beach houses are not going to pay for themselves after-all.