Amazon stocks rally up by 17%: Know other changes
Amazon.com Inc registers a rise of 17% in its stocks. It comes as Amazon.com exceeds the expectations of profit for Holiday season.
Amazon stocks rally up by 17%. During COVID-19 pandemic, e-commerce sites were playing a major role. Amazon.com Inc, is the United States based giant. However, the pandemic caused disruptions in the supply chain. To meet the demands, Amazon was investing enormously in managing disruptions.
What are the steps that Amazon.com took?
- Firstly, Amazon.com Inc signed bonuses for workers to stay ahead in a tightening labor market by attracting labor.
- Secondly, it has paid more for shipping to get the right warehouse for storage.
- Thirdly, in order to compensate the increase in the cost of shipping and labor wages, Amazon.com increases the price of Amazon prime subscription.
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How do these changes in Amazon.com affect you?
Its noteworthy that the changes are exclusively made for users for the United States. There might be some ways how Amazon stocks rally up by 17% affects you.
- It is the biggest profit in the court of Amazon.com Inc since October 2009. It is a good news for investors as the income during the holiday quarter is double from the last year, stands at $14.3 billion.
- Amazon prime provides facilities of fast shipping and media services. The charges of monthly subscription will go up from $12.99 to $14.99. The charges of annual subscription will go up from $119 to $139.
- The changes in Amazon prime will come in effect from 18th February 2022.
- Ad and cloud business soars.
- Amazon Web Services (AWS) outperforms Microsoft corp and Alphabet Inc. AWS spends 33% cloud infrastructure while others stand at 22% for Microsoft and 9% for Alphabet’s Google.
- Moreover, Amazon’s ad revenue reports an increase of 32% in the fourth quarter which is higher than Youtube owned by Alphabet.
Currently, there are over 200 million subscribers of Amazon Prime.
