Amazon Reports Modest Q4 Profit, 2014 Loss, Yet Stock Rises
AWS was the earnings report's clear highlight, showing 90 percent growth in the last year.Sometimes, it's difficult to figure what Wall Street and investors are thinking. Amazon.com, which on Jan. 29 reported that it netted a loss in fiscal 2014 and also revealed that its fourth-quarter profit slipped, nonetheless saw its stock price improve 12 percent in after-hours trading. The stock closed at $311.78 and then shot up $38.15 (12.24 percent) to $349.93. Who knew? [NEWS UPDATE: Amazon's stock continued to rise on Jan. 30, jumping another 11 percent—about $34.93—in morning trading. The surge added a whopping $16.5 billion to Amazon's corporate value; that increase alone is more than the total market cap of nearly half the companies on the S&P 500 list, according to MarketWatch.] In Q4 2014, Amazon reported net income of $214 million, or 45 cents a share, compared with $239 million, or 51 cents a share, a year earlier. Still, it was higher-than-projected net income, despite sales growth below forecasts. Amazon generally has impressed investors with rapidly growing sales and investments, despite lack of high profits.
The Seattle-based retail and Web services provider had reported three losing quarters in 2014, and those losses were the key impactors in the company's yearly earnings, which showed an overall loss of $241 million on the year, as opposed to a net gain of $274 million in 2013.