Amazon's Earnings Were Stronger Than Expected. Rivian Helped.

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The impact of changes in Rivian's stock price on Amazon's earnings is getting smaller.

Amazon.com ‘s stronger-than-expected third-quarter net income came partly thanks to Rivian Automotive, though the results were solid even after removing the impact of Rivian’s stock volatility.

Citi analyst Ronald Josey wrote Friday that Amazon Web Services’ revenue was “better than feared” and retail was “resilient.” Amazon’s net income number includes a $1.2 billion gain on its roughly 160 million Rivian shares. Rivian stock opened the third quarter at $16.66 a share and closed it at $24.28. The $1.2 billion is the difference between those prices—$7.62—times the 160 million shares held.

Net of the gain, Amazon earned about $7.7 billion in the third quarter, still much better than Wall Street expected.

 

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