Amazon holiday earnings blow away expectations (thanks to Rivian), stock spikes

After saying that it could have no operating profit at all in the fourth quarter, Amazon tops $14 billion in net income, with a huge chunk coming from investment in Rivian electric-vehicle startup Inc. executives thought that supply-chain and staffing concerns could wipe away their holiday profit.

Amazon AMZN, -7.81% reported fourth-quarter profit of $14.3 billion, or $27.75 a share

after reaping earnings of $11.73 a share in the holiday season a year ago, with $11.8 billion attributed to the company’s investment in Rivian Automotive Inc

 RIVN, -6.16%, which went public in the quarter. Sales grew to $137.4 billion from $125.56 billion the year before, a then-record total that Amazon surpassed in Thursday’s report.

Analysts on average expected Amazon to report $3.61 in earnings  despite a forecast that said a break-even quarter from an operating standpoint was possible  on sales of $137.68 billion

 Shares jumped more than 14% in after-hours trading following release of the results, after closing with a 7.8% decline at $2,776.91

“As expected over the holidays, we saw higher costs driven by labor supply shortages and inflationary pressures, and these issues persisted into the first quarter due to omicron

 we continue to feel optimistic and excited about the business as we emerge from the pandemic,” Chief Executive Andy Jassy said in a statement included with the results Thursday