Amazon didn’t make a profit for its first 6 years. When Amazon launched in 1994, it operated at a loss for years while focusing on growth and reinvestment. It wasn’t until 2001 that the company finally turned a profit—a modest $5 million on revenues of over $1 billion. Today, Amazon is one of the most profitable companies in the world, proving the value of patience and long-term strategy in business.
Market Wrap
S&P 500 rose by 0.6%, approaching its all-time high from early December on a combination of robust corporate earnings and significant political announcements. Despite the positive market movements, concerns continued on potential 25% tariffs on imports from Canada and Mexico, leading to fluctuations in currencies such as the Mexican Peso and Canadian Dollar. Concerns about inflation and interest rates kept small cap performance in check with the Russell 2000 declining 0.6%.
Once again became the largest U.S. company by market capitalization, with its stock rising 4.4%, reflecting investor optimism in AI-related technologies.
Rose 6.8%, building on a 7% gain the previous day, continuing to benefit from its involvement in the "Stargate" AI infrastructure project, a $500 billion investment announced earlier.
Reported a record addition of 19 million subscribers in the last quarter, largely due to its expansion into live sports. This success led to a 9.7% surge in its shares.
Reported fourth-quarter earnings of $2.04 per share, exceeding the consensus estimate of $1.99. Sales increased by 5.3% to $22.52 billion, slightly above expectations. However, the company provided conservative sales guidance for 2025, projecting revenues between $89.2 billion and $90 billion, below the analyst forecast of $91.04 billion. This cautious outlook, influenced by anticipated foreign exchange headwinds and potential market share challenges in certain segments, led to a 1.9% decline in the stock price.
United Airlines reported a 63% increase in fourth-quarter earnings to $3.26 per share, surpassing the expected $3.04 per share. Revenue rose by 7.8% to $14.7 billion, exceeding the anticipated $14.4 billion. Despite these positive results, the stock declined by 2.3%. This drop is attributed to investor concerns about potential overcapacity in the airline industry and the sustainability of current demand levels. Additionally, rising labor costs and fuel price volatility may have contributed to apprehensions about future profitability.
The stock decreased by over 3% following a warning of softer activity in North America for the year and reporting lower-than-expected quarterly revenue.
