Amazon Sales Reach $43.7 Billion, Shares Plunge

 

Amazon.com, the Internet’s leading retailer, announced financial results for its fourth quarter ended December 31, 2016.

Net sales increased 22% to $43.7 billion in the fourth quarter, compared with $35.7 billion in fourth quarter 2015. Shares in the company plunged after hours after sales were slightly below estimates.

Net income was $749 million in the fourth quarter, or $1.54 per diluted share, compared with net income of $482 million, or $1.00 per diluted share, in fourth quarter 2015.

For all of 2016, net sales increased 27% to $136.0 billion, compared with $107.0 billion in 2015. Excluding the $550 million unfavorable impact from year-over-year changes in foreign exchange rates throughout the year, net sales increased 28% compared with 2015.

Operating income was $4.2 billion, compared with operating income of $2.2 billion in 2015.

Net income was $2.4 billion, or $4.90 per diluted share, compared with net income of $596 million, or $1.25 per diluted share, in 2015.

“Our Prime team’s customer obsession kept them busy in 2016,” said Jeff Bezos, Amazon founder and CEO. “Prime members can now choose from over 50 million items with free two-day shipping — up 73% since 2015. Prime Video is now available in more than 200 countries and territories. Prime Now added 18 new cities, which means millions more members now get one and two hour delivery. New benefits were also added to the list, like Prime Reading, Audible Channels for Prime, Twitch Prime and more. And customers noticed — tens of millions of new paid members joined the program in just this past year.”

Amazon Web Services reported revenues of $3.5 billion in the fourth quarter, up 47% from last year.

Amazon announced that it will create more than 100,000 new, full-time, full-benefit jobs in the U.S. over the next 18 months, and will include positions across the country for all types of experience, education, and skill levels.

Fulfillment by Amazon (FBA) delivered more than two billion units on behalf of sellers in 2016, and the number of active sellers using FBA grew more than 70%. Using the FBA service, Amazon sellers from more than 130 countries fulfilled orders to customers in 185 countries.

In 2016, there were over 100,000 sellers with sales of more than $100,000 selling on Amazon.

The company said it had 341,400 employees at the end of 2016, up 48% from a year ago.