Everything is clicking for Amazon.com Inc.
Not only did the internet behemoth post very strong results on a 26 per cent revenue gain to US$60.5 billion, but Q4 revenue beat expectations in every segment (North America, international, Web Services, advertising etc.) for the first time in eight years.
Perhaps more importantly, Amazon is demonstrating that it can continue to invest, at the same time as margins remain healthy and even exceed forecasts.
The final quarter of the year is always the most challenging in terms of operations, and Amazon has had warehouse efficiency and shipping problems during the period in the past. Yet Q4 2017 appears to have been very strong operationally, as the company’s decision to boost square footage by 30 per cent in each of the past two years is paying off.