From the Amazon Press Room:
Fourth Quarter 2016
Net sales increased 22% to $43.7 billion in the fourth quarter, compared with $35.7 billion in fourth quarter 2015. Excluding the $558 millionunfavorable impact from year-over-year changes in foreign exchange rates throughout the quarter, net sales increased 24% compared with fourth quarter 2015.
Operating income increased 13% to $1.3 billion in the fourth quarter, compared with operating income of $1.1 billion in fourth quarter 2015.
Net income was $749 million in the fourth quarter, or $1.54 per diluted share, compared with net income of $482 million, or $1.00 per diluted share, in fourth quarter 2015.
Full Year 2016
Net sales increased 27% to $136.0 billion, compared with $107.0 billion in 2015. Excluding the $550 million unfavorable impact from year-over-year changes in foreign exchange rates throughout the year, net sales increased 28% compared with 2015.
Operating income was $4.2 billion, compared with operating income of $2.2 billion in 2015.
Net income was $2.4 billion, or $4.90 per diluted share, compared with net income of $596 million, or $1.25 per diluted share, in 2015.
“Our Prime team’s customer obsession kept them busy in 2016,” said Jeff Bezos, Amazon founder and CEO. “Prime members can now choose from over 50 million items with free two-day shipping — up 73% since 2015. Prime Video is now available in more than 200 countries and territories. Prime Now added 18 new cities, which means millions more members now get one and two hour delivery. New benefits were also added to the list, like Prime Reading, Audible Channels for Prime, Twitch Prime and more. And customers noticed — tens of millions of new paid members joined the program in just this past year.”
. . . .
- Fulfillment by Amazon (FBA) delivered more than two billion units on behalf of sellers in 2016, and the number of active sellers using FBA grew more than 70%. Using the FBA service, Amazon sellers from more than 130 countries fulfilled orders to customers in 185 countries.
- In 2016, there were over 100,000 sellers with sales of more than $100,000 selling on Amazon.
- In the fourth quarter, FBA units represented more than 55% of total third-party units.
. . . .
- In 2016, the U.S. Prime program added Prime Reading, Twitch Prime, Audible Channels for Prime, and the Prime Photo Family Vault as new Prime-exclusive digital benefits.
- Prime members engaged with the Prime digital benefits at a voracious rate, more than doubling the number of video, music, and reading activities compared to 2015.
. . . .
- Alexa-enabled devices were the top-selling products across all categories on Amazon.com this holiday season. Customers purchased and gifted a record-setting number of devices from the Amazon Echo family with sales up over 9x compared to last holiday season.
- Customers purchased millions of Fire tablets this holiday season. Additionally, Amazon brought Alexa to Fire HD 10, Fire HD 8, and other Fire tablets via a free software update, making it easy for customers to enjoy endless entertainment at the touch of a button.
- Amazon sold millions of Fire TV devices this holiday season. The new Fire TV Stick with Alexa Voice Remote has received over 25,000 5-star customer reviews in just three months, and Amazon released a free, over-the-air software update delivering a new user interface that makes finding what to watch next even easier and more enjoyable.
- Third-party developers released more than 4,000 new Alexa Skills since October, including ADT, AT&T, CBS, Pizza Hut, and The Wall Street Journal. Tens of thousands of developers are building skills for Alexa.
- Tens of thousands of developers are using the Alexa Voice Service to integrate Alexa into their products, including Dish DVRs, Ford andVolkswagen vehicles, GE C Lamp, Huawei Mate 9, LG Smart Instaview fridge, and Whirlpool appliances.
Link to the rest at Amazon Press Room
Alas, the stock was down about 38 the last time I looked (after hours trading).
Didn’t meet the expectations, from the brief snippet I saw.
Not that those tea-leaf readers have ever been close to guessing where Amazon was going to be …
Much of their tea reading is from the quarterly guidance Amazon itself provides.
I put in a buy order for tomorrow morning. There was actually a lot of good news in the report — if you believe in the long game.
Sure there is. We have to remember there are long term, medium term, and short term traders. Each use a different approach to the market. Buy/sell signals for one group may not be signals for another.
High velocity programmed trading systems are programmed to buy or sell based on the immediate release of the quarterly figures. Computers read them. Nobody even has a chance to read them before the fills start to come in.
The main reason for the drop was the guidance of lower profit for the next quarter. Setting up an air cargo wing isn’t cheap.
For the long term the relevant issues are the steady 24% year over year boost in sales, the steady growth of Fullfilled by Amazon, growth of Alexa third party use, and international growth. The stock price drop is probably a good thing in reigning in “irrational exuberance” about the stock.
That evil Amazon must be doing something very wrong to get that many customers/suppliers happy to buy/sell that many things through them. Evil I tells yous!