Amazon’s share price opened 9% higher on Wednesday January 30th to trade just shy of a record high around the $284 level after reporting earnings that beat market expectations.
Amazon’s fourth quarter gross profit margins increased by 24%, higher than the 22% median expectations by most analysts with margins fuelled by sales of higher margin products.
The jump in gross margins helped to cool disappointment from the fact that revenues missed forecasts, coming in at $21.27bn and marking a rise of 22% year on year. Yet undoubtedly the story here is of success in strengthening margins and this is continuing to drive high appetite for investors to buy into Amazon’s share price.
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