$Amazon (AMZN.US)$ slumped, and then rose by 13.5% after pos...

$Amazon (AMZN.US)$ slumped, and then rose by 13.5% after posting fourth-quarter results. The e-commerce firm earned $27.75 a share, compared to $14.09 a share in fourth quarter 2020. Amazon should not have posted the year over year (Y/Y) comparison because it included $11.8 billion in non-operating income. It booked $Rivian Automotive (RIVN.US)$ valuation gain at the end of the quarter.

After RIVN stock slumped to new lows this year, will Amazon need to post a non-operating income? If it does, will it switch to a non-generally accepted accounting principles (GAAP) measure to overlook the paper loss?

This abnormality aside, Amazon’s net sales increased by 9% to $137.4 billion. Net income rose to $14.3 billion with Rivian’s $11.8 billion gains included. Last year, Amazon earned $7.2 billion. Although the $2.5 billion net income is sharply lower from last year, the firm faced labor and supply shortages. Inflationary pressures also persisted throughout last year.

Amazon’s Web Services (AWS) business is a bright spot. The cloud service grew by 40% Y/Y. It now has a $71 billion revenue run rate.

Investors will flock to this stock. Expect AMZN stock to continue a V-shaped recovery for February.