Amazon rejoins Big Tech’s feted club

Amazon’s market capitalisation has exceeded $1 trillion for the first time in over a year, on the heels of its blockbuster fourth-quarter earnings. Jeff Bezos’s empire built on stock price gains of more than 10 per cent overnight on Thursday to rejoin Big Tech’s feted club, currently occupied by Apple and Microsoft. Google parent Alphabet passed the $1tn milestone for the first time in January, but has since dipped below, while Amazon first hit it in September 2018 before similarly slipping back… The company’s earnings were boosted by its new initiative to ramp up its infrastructure to offer one-day shipping on 100 million products, which cost less than the $1.5 billion it said it had anticipated. Subscriptions to Amazon Prime, the premium service that costs $119 a year in the US, surged in Q4 to over 150 million globally as shoppers panicked their way through last-minute gift-buying… Other areas of Amazon’s business also outperformed. Its cloud computing arm, Amazon Web Services (AWS), had sales growth of 34 per cent, contributing two-thirds of Amazon’s overall operating income for the October-December period… So far, Wall Street appears unfazed by potential trouble ahead for Amazon in 2020. The company is currently being investigated over its competitive behaviour in both the US and EU… 

Dave Lee