Amazon scooped up government debt in 2018

By MarketsFOXBusiness

Amazon beats on Q4 earnings as stock slides

“Bulls & Bears” panel on Amazon’s fourth-quarter earnings and whether the company will keep up its impressive momentum.

E-commerce giant Amazon doubled its government-related debt holdings last year amid myriad risks to the U.S. and global economies, and a volatile year-end stock market.

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According to its annual report, by the end of 2018 Amazon’s investments in U.S. government and agency securities totaled $11.7 billion, as first reported by CNBC. Throughout the year, its debt holdings rose by a record $6.8 billion.

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Overall, bonds holdings accounted for about 28 percent of its cash, equivalents and marketable securities—the highest percentage since 2010.

In 2018, the e-commerce giant reported a record $10.1 billion net income.

The company’s liquidity, cash and equivalents have increased significantly throughout recent years – from $26 billion in 2016 to $41 billion in 2018. Its operating cash flows rose from $17.2 billion to $30.7 billion during the same time period, meaning, overall, Amazon had more money on hand to invest last year.

A spokesperson for Amazon did not return FOX Business’ request for comment.

Government-related securities and debt are generally considered lower-risk investments.

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Investors also rotated out of the technology sector in the fourth quarter of 2018, leading to a broader market downturn. Prominent stocks – including Amazon – took a beating: the e-commerce giant lost more than 25 percent of its value over the course of three months.

So far this year, the stock is up more than 7 percent.