Amazon.com Inc. shares skyrocketed in after-hours trading Thursday after the e-tailing giant reported fourth-quarter diluted earnings per share of $27.75, results which included an $11.8 billion gain from its investment in Rivian Automotive Inc., the electric vehicle maker that completed an initial public offering in November and that has a contract with Amazon to build 100,000 delivery vans for the Seattle-based e-tailer.
Amazon (NASDAQ: AMZN) reported net income of $14.3 billion in the fourth quarter, compared with $7.2 in net income, or $14.09 per diluted share, in the fourth quarter of 2020. The 2021 net income figure from the Rivian (NASDAQ: RIVN) pre-tax investment gain, which Amazon classified as nonoperating income.
Operating income fell to $3.5 billion, half of the $6.9 billion reported in the 2020 quarter. Company executives had telegraphed declines in operating income as the company poured billions of dollars into its peak-season fulfillment and delivery network, and was impacted by persistent and severe labor shortages.
Amazon spent $23.6 billion on shipping worldwide in the quarter, a 10% gain from the 2020 quarter when it also spent heavily on delivery services.
After hours, shares rose about $500 a share, a gain of nearly 18% from Thursday’s close. In the regular session, shares fell more than 7.8% in sympathy with a sharp sell-off in technology shares after Meta Platforms Inc., formerly Facebook Inc., (NYSE: FB) posted weak fourth-quarter results and issued disappointing guidance.