Glimmer of hope

2 February 2017 By Jennifer Saba Follow @jennifersaba

The $400 bln online retailer’s net income nearly quadrupled in 2016, from a low base. Its web-services division powered onward. But Amazon may spend more than analysts thought in the first quarter, which dinged the volatile stock. CEO Jeff Bezos still prefers growth to profit.

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Amazon.com on Feb. 2 reported fourth-quarter net sales increased 22 percent year-over-year to $43.7 billion. Net income was $749 million, or $1.54 per diluted share, compared with $482 million, or $1 per share, in the final quarter of 2015. Net income for the full year rose to $2.4 billion from $596 million in 2015.

The online retailer did better than analysts expected on profit in the quarter, but fell slightly short on sales and on its forecast for operating income in the first quarter of 2017. Shares fell more than 4 percent in after-hours trading.

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