Market Event, General

Week in Review: Amazon’s $125 billion quarter

Annie Charalambous, Friday, 5 February 2021

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We kicked off February with Wall Street taking the hit on GameStop and the big guns of Big Tech reporting sky-high financials. The first week of the month wouldn’t be complete without the US jobs data, and with all signs pointing to a turnaround, let’s take a closer look at the stories that stood out.

Bezos bows out after >$100 billion quarter

Only a week after Apple posted quarterly revenue of $111 billion (its first-ever), Amazon topped it, reporting a record $125 billion in sales, exceeding analysts’ already-high $119 billion estimates.

EPS came in at $14.09, almost twice as much as the $7.23 forecast. Though execs did add that Q1 2021 will likely see a slowdown with revenue anywhere between $100 billion to $106 billion, YoY that’s still an increase of 33% to 40%. The company added 175,000 new staff in the fourth quarter alone to keep up with the demand.

It was also announced that Jeff Bezos will be stepping down from Q3 as Chief Executive to focus on mergers, strategy, and the groceries side of Amazon. Though shares only climbed 1% in the trading session after the release, $AMZN gained 4% in the lead-up.

 

January’s jobs data looks promising

With January’s nonfarm payroll data just hours away (at time of writing), a positive figure could be an indicator of economic recovery. Wednesday’s ADP Employment Change pointed towards 174k new jobs in the private sector, where only 49k were expected. The two data sets are not officially connected; however, the ADP data can often give us a glimpse into what to expect.

For January, the analyst consensus is 50k new jobs, with the unemployment rate expected to remain unchanged at 6.7%. The Biden Administration’s goal by the end of 2021 is to get the employment rate not only to pre-pandemic levels, but lower. Initial Jobless Claims were also down this week; around half of the jobs lost over the peak months of the pandemic have since been regained.

 

Movers & shakers

🔺 Alphabet (GOOG) gained as much as 9% Wednesday, after reporting $56 billion in revenue for Q4 the night before, making its founders $14 billion richer. Read the full story on Forbes

🔻 Snap Inc (SNAP) fell as much as 10% in after-hours trading Thursday despite positive data in its latest earnings release. Get more on that over on MarketWatch

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