Business: Amazon Sales Grew by 20% in 2014

Amazon surprised everyone by making money instead of losing it in the fourth quarter of 2014. The company is famous for “losing money to make money” not only beat the earning expectations of stock analysts, it crushed them. For last quarter, Amazon released a $214 million net income, the first time that the company has gone above estimates in over six quarters. As a result, the company’s stock went up thirteen percent this week. Amazon has been adding services left and right, investing in free two day shipping, drone delivery and the various features that come with their prime membership, like streaming video. Amazon’s sales grew 20 percent in 2014 to almost $89 billion and the company will continue to spend money on adding new features to prime membership, like the one-hour delivery option that has been available in New York city since December. As the company notices a shift in consumer attitudes to a desire for more on-demand service, it plans to continue to make commodity more quickly accessible to customers.

Contributor: Johanna Hartman

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