The Bad Parts of Amazon's Earnings Report
Judging by the market's reaction to Amazon's (NASDAQ: AMZN) fourth-quarter report, you'd think the e-commerce and cloud computing giant hit it out of the park. In some ways it did. The company's stake in electric vehicle company Rivian delivered a gain of nearly $12 billion; Amazon Web Services (AWS) continues to fire on all cylinders, growing rapidly and producing incredible profits; and an announced price hike for Amazon Prime will bring in billions in additional revenue.
All of this helped push Amazon stock up more than 10% on Friday, a big move for a trillion-dollar company. This post-earnings rally undid some of the damage inflicted by the rout in growth stocks over the past few months, although the stock is still down around 15% from recent highs.
The market focused on the good parts of Amazon's report on Friday, but there were plenty of bad parts that investors shouldn't ignore.
Source Fool.com
