By RACHEL MARTIN, Associated PressAmazon.com (AMZN) — Amazon’s stock has been a magnet for investors for years.
But the e-commerce giant has now become the most valuable U.S. company by market value, eclipsing even Apple Inc. and Tesla Inc.
In its fourth quarter earnings call Thursday, Amazon Chief Executive Jeff Bezos said his company is now worth $5.2 trillion, an increase of nearly $3 trillion over the previous quarter.
It’s the biggest one-year increase since the second quarter of 2007.
Bezos said Amazon’s revenue rose 12% from the previous year, driven by growth in its Kindle e-readers and an increase in sales of its Fire tablet.
Amazon also said it earned $2.2 billion on $4.5 billion in profit last year.
Its revenue is projected to rise to $9.4 billion in 2021 from $8.4 per share in 2021.
The stock gained more than 4% in after-hours trading, its biggest one since Bezos took over in January.
The Nasdaq Composite index of the world’s largest companies rose 0.4%.
Amazon’s stock was up by nearly 30% in the last week, the biggest percentage gain in almost two years.
The company also reported a 7% jump in quarterly profit, a big improvement from the last quarter when it reported a 6% decline.
Amazon has said its profit has grown faster than anticipated in the past year.
Shares of Amazon jumped about 2% in midday trading, outperforming a gain of 2% that followed the earnings call.
The stock closed down 4.7% in afternoon trading.
For the fourth quarter, Amazon’s net income rose to $2 billion from $1.9 billion in the prior quarter, or a profit margin of 7.7%.
Analysts surveyed by FactSet expect Amazon to earn $2 per share on $5 billion of revenue in 2021, the company’s most recent quarterly report.
The profit margin for the year is about 6%.
Amazon has had a tough time competing in the ecommerce market.
It has struggled to deliver high-quality e-books and online services to customers, and its business model has often struggled to survive.
In addition to selling e-ink e-reader devices, Amazon has been hit by multiple lawsuits alleging it failed to pay royalties on sales of video games and movies.
The suits have forced the company to slash prices on its popular streaming video service, Prime Video.
Amazon has also been facing competition from other companies, including Amazon.com Inc., which has been selling ebooks for years, while Amazon’s rival e-book store, Barnes & Noble Inc., has struggled.
Amazon stock is up about 15% over the past three years.