Amazon.com's profit nearly doubled over the critical holiday period due to controlling labour costs, managing supply issues well, and earning in its cloud computing and advertising businesses.
But most of the profit came from investing in electric vehicle maker Rivian Automotive, which made an initial public offering (IPO) in November last year and netted Amazon nearly $12 billion.
The tech and e-commerce giant reported $137.4 billion in quarterly revenue, up from $125.6 billion in the same period last year. Net income rose to $14.3 billion from $7.2 billion a year ago. The financial results surprised some analysts, who had expected more subdued numbers as Amazon grappled with rising costs on several fronts.
Amazon shares rose more than 14% in trading after Thursday's stock market closes in New York. Although growth has slowed, the company signalled a more positive outlook than previous quarters. The company said it expects operating income to be between $3 billion and $6 billion for the current quarter, compared to $8.9 billion during the first quarter of 2021. Earnings per share were more than seven times the average of $3.63 per share expected by analysts surveyed by FactSet.