AWS, Amazon’s cloud services unit, saw revenue rise 40% in the fourth quarter

2022-05-09 0 By

Amazon reported on February 6 (Telecoms) that its fourth-quarter revenue was $137 billion, up 9% year on year, while net income was $14.3 billion, up 98% year on year.However, operating income fell to $3.5 billion in the fourth quarter, down from $6.9 billion a year earlier.Overall revenues were significantly below expectations, according to Investopedia, but investors still had plenty of confidence thanks to a 17 per cent rise in the share price.Amazon’s cloud business was the main driver of the quarter, as were Microsoft’s and Google’s recent financial reports.Revenue at AWS, its cloud services division, rose 40% to $17.8 billion.Instead, Amazon’s retail division lost $1.6 billion.Perhaps to limit its losses, Amazon announced that the price of its Amazon Prime service in the US would rise by $12.99 to $14.99.Amazon CEO Andy Jassy noted some of the challenges facing its retail division: “As expected, we saw labor supply shortages and inflationary pressures leading to higher costs during the holiday season, and these continued into the first quarter due to the coronavirus pandemic.Despite these short-term challenges, we remain optimistic and excited about our business as we emerge from the pandemic.”(Editing: Ning Lu)