Amazon Pleases Wall Street With Improved Margins

Amazon reported fourth quarter earnings and revenue that were below Wall Street's expectations. The e-commerce giant posted record sales of $21.3 billion, missing analyst expectations by $1 billion.

At $97 million, net income came in short of expectations as well, as Amazon's focus on long-term growth continues to hurt its short-term results. The company is heavily investing in its digital services and sells its Kindle devices at cost to get customers locked into Amazon's digital content ecosystem.

Amazon's gross margin increased to 24 percent in the fourth quarter. A fact that was very well-received by analysts and shareholders, as higher margins suggest that Amazon's current growth strategy will likely pay off in the future. As a result, Amazon's stock price soared to an all-time high after the earnings release, despite missing targets on revenue and profit.



Infographic: Amazon Pleases Wall Street With Improved Margins | Statista
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