Amazon's enjoyed the most significant increase in value in over seven years and the largest market value increase in history due to the eCommerce behemoths positive earnings report. Shares increased by 14% on Friday, pushing the share price to over $3150 by close and its overall value to a staggering $1.6-trillion.
Investors were buoyed by strong performance in the cloud division, which showed that Amazon is increasingly becoming more diversified in how it earns its revenue. Over 50% was generated through cloud computing and ads, as it has become less reliant on its e-commerce division as the main driver of growth.
Amazon also announced that it is increasing its US Prime membership subscription by a substantial 17% to help with the increase in shipping and labor costs.
Amazon spent significant amounts of capital in ensuring packages reached its customers over the festive season. The tech giant increased staff by over 140,000, delivered packages at a loss at times, and boosted overtime pay and bonuses for its workforce.
Talks of Pelation takeover
Amazon is rumored to be exploring an offer for Peloton after the exercise bike/training company enjoyed a boom time during the pandemic. It has since struggled to maintain that growth as the effects of the pandemic started to decrease. Amazon's fulfillment network and eCommerce platform might just be what Peloton needs to continue that level of growth.