Amazon’s 4th quarter financials: wow, these are good!

Amazon’s 4th quarter financials: wow, these are good!

Blue Origin isn’t Jeff Bezos’ only company blasting through the stratosphere!😉

Amazon has their fourth quarter 2015 (covering the holiday season)

press release

out, and you can download slides and listen to today’s conference call about it here:

http://phx.corporate-ir.net/phoenix.zhtml?p=irol-eventDetails&c=97664&eventID=5215069

To listen to the Webex, you’ll need to do a free registration, including a company. You can just put “independent” for the company, if you want.

There are so many positives overall, as well as on the consumer side!

I’ll quote this one for the overall:

“Net income was $596 million, or $1.25 per diluted share, compared with net loss of $241 million, or $0.52 per diluted share, in 2014.”

As to other stats…well, if you want to read some good news, check the press release.😉

Just some of the consumer side points:

  • Fire TV remains the #1 best-selling streaming media player in the U.S [that means more than Apple TV, more than Chromecast]
  • The $50 Fire tablet has been the #1 best-selling, most gifted, and most wished-for product across all items available on Amazon.comsince its introduction 19 weeks ago
  • In 2015, worldwide paid Prime memberships increased 51% — 47% in the U.S. and even faster outside the U.S.
  • In the fourth quarter, Prime Music streaming hours more than tripled in the U.S. compared with fourth quarter 2014

Not mentioned? Kindle EBRs (E-Book Readers) and e-books.

I’m not worried about that, though. We have to admit it’s a small part of Amazon’s business (even if it did launch their now mighty devices portion).

During the Q&A portion, people asked about AWS (Amazon Web Service) growth slowing (they explained that pretty well, I thought), and how shipping has gotten a bit more expensive for Amazon…but generally, I think the investors who asked questions on the call sounded reasonably pleased.

Greatly increased profits, greatly increased sales, market dominance…so, naturally, the stock dropped after the news.🙂

No, seriously…it is down:

Financial Times article by Leslie Hook

However, that was after it went up today:

chart at Money.CNN

Investors were disappointed because, while it was great, it wasn’t as great as they expected.

It feels a little bit like a C student coming home with straight As and the parents saying, “You couldn’t have gotten A+s? Go to your room!”😉

As a consumer, I’m happy with what I see. Low cost devices worked for Amazon…that’s where I think they should be.

What do you think? I have some financial savvy readers…fill me in on insights I’m missing.🙂 Feel free to tell me and my readers what you think by commenting on this post.

Bonus recommendation:

Autumn Angels (at AmazonSmile: benefit a non-profit of your choice by shopping*) by Arthur Byron Cover

This isn’t for everyone, but if you are a geek, you may really like this Nebula nominated novel. There are so many allusions to characters (in addition to fascinating original ones). Regular readers know I’m a big Doc Savage fan, and “The Lawyer” here is based on Ham Brooks. This is one of those unspoilable books…it’s not about the plot.🙂 I’m mentioning now because it is available through

Kindle Unlimited (at AmazonSmile: benefit a non-profit of your choice by shopping*)

Amazon’ subser (subscription service). If the concept of wildly disparate geeky characters being together in the same novel sounds intriguing to you, give it a shot.🙂

Join thousands of readers and try the free ILMK magazine at Flipboard!

* I am linking to the same thing at the regular Amazon site, and at AmazonSmile. When you shop at AmazonSmile, half a percent of your purchase price on eligible items goes to a non-profit you choose. It will feel just like shopping at Amazon: you’ll be using your same account. The one thing for you that is different is that you pick a non-profit the first time you go (which you can change whenever you want)…and the good feeling you’ll get. :) Shop ’til you help! :) 

This post by Bufo Calvin originally appeared in the I Love My Kindle blog. To support this or other blogs/organizations, buy  Amazon Gift Cards from a link on the site, then use those to buy your items. There will be no cost to you, and a benefit to them.

4 Responses to “Amazon’s 4th quarter financials: wow, these are good!”

  1. Edward Boyhan Says:

    Just to tone down the euphoria a bit. The Street (what do they know :grin) was massively disappointed (I guess you can’t win).

    Their profit (on a GAAP basis) was $1.00/share; the street was expecting $1.56. AWS growth was not anywhere near street expectations either. All of this comes under the heading of “what were they thinking” (the analysts that is :grin). More substantively, and concerning: operating costs rose 20.5% — that’s a lot.

    Of course Amazon is not your normal company — they’d much rather plow earnings back into development than give it to those ratty investors (:grin).

    Earlier this week there were stories that Amazon was about to pass Apple with the largest market cap anyway. I guess we’ll have to wait a while more for that happy event.

    The key metric for me (and as it turns out for Jeff Bezos as well): for the first time Amazon has reported full year revenues in excess of $100 billion. Bezos remarked that he can still remember when he was driving around in his car to deliver product, but he says it’s still as enjoyable today as it was back then.

    For a mostly positive analysis from the WSJ:
    http://www.wsj.com/articles/amazon-reports-best-quarterly-profit-ever-1454015924

    For once I didn’t listen to the conference call — as I was meeting with my broker😀

    • Bufo Calvin Says:

      Thanks for writing, Edward!

      Right, I noted the disappointment.

      It honestly seems silly to me, but I’m not a serious investor who makes money doing it.

      It feels to me like what happened was that the investors (some of them) had been holding on to Amazon stock for years, waiting for it to make a profit, which wasn’t the Amazon plan at that point…sort of like being platonic friends with somebody when you want more (or let’s say when you want something different). Amazon recently made a profit for the first time…let’s call that like a peck on the cheek good-bye after seeing a movie together.

      Suddenly, the investors wanted everything after years of pent-up desire…and when Amazon didn’t deliver that, they got really mad and stomped off.😉

      Well, some of them did…but most of them will be right back into the relationship. I would think Amazon will be higher in June than it is now, and will likely grow faster than the market overall.

  2. Tuxy Says:

    I’m sure the $50 fire sold like crazy, but I’ve seen a lot of complaints about the quality and a variety of problems with it. We have two of them, and the sd card has intermittent issues, and they frequently get into a weird state that requires rebooting.

    Since the warranty is so much shorter from the fire than for all the other fires and kindles, I think it could cause some issues. I’m sure that many people didn’t realize that the warranty is short, and many will be furious when the fire breaks down.

    • Bufo Calvin Says:

      Thanks for writing, Tuxy!

      I have one, but I don’t use it that much. I haven’t seen those problems, but I’m not a typical user.

      Do you keep the SD card in the device? I wonder if that could engender the “weird state”…

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