Bezos Is $12.8 Billion Richer After Amazon Delivers Strong Holiday Sales

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Bezos Is $12.8 Billion Richer After Amazon Delivers Strong Holiday Sales .Amazon’s Jeff Bezos has further cemented his position as the world’s richest person after the e-commerce giant reported a strong holiday quarter.

The company said on Thursday that quarterly profits and revenue grew by the double digits, easily surpassing analyst expectations. That news sent the stock up by about 12% in after-hours trading, adding a swift $12.8 billion to Bezos’ fortune, as of 4:55 pm Eastern. The Amazon founder and CEO is now worth $128.9 billion.

Bezos has traded places with LVMH’s Bernard Arnault for the title of the richest person on the planet in recent months. However, if the stock holds onto its gains, he will remain comfortably ahead of both Gates (net worth: $110.8 billion) and LVMH’s Bernard Arnault ($105.2 billion). On Friday, the company also notched a market cap above $1 trillion.

Amazon’s strong quarter was driven by record holiday sales, likely bolstered by last-minute shoppers who took advantage of the company’s new free, one-day shipping. Amazon has been investing heavily in logistics after promising last year that it would make one-day shipping the new normal for Amazon Prime members, rather than the two-day shipping that it has long offered. In the fourth quarter alone, it planned to spend $1.5 billion on the initiative.Today In: Business

“Prime membership continues to get better for customers year after year. And customers are responding — more people joined Prime this quarter than ever before, and we now have over 150 million paid Prime members around the world,” said Bezos in a statement.

During the quarter, net income jumped to $3.3 billion, or $6.47 per share, up from $3 billion, or $6.04 per share, a year earlier. That was leaps and bounds above the $4.04 per share that Wall Street analysts were looking for. Revenue increased 21% to $87.4 billion, beating analyst estimates of $86.01 billion.

he company gave solid guidance, too. It expects revenue in the first quarter to increase in the range of 16% and 22% year-over-year to between $69 billion and $73 billion.

One shareholder who has been taking a few chips off the table is Jeff Bezos’s ex-wife MacKenzie Bezos, who sold, gifted or transferred about $350 million worth of Amazon shares, according to a recent filing with the SEC. That was equivalent to 1% of her Amazon stake.

Source: Forbes