Amazon reported its fourth-quarter earnings, beating analysts’ expectations but providing worse-than-anticipated guidance for the first quarter of 2024. The company’s stock fell over 3% in pre-market trading on Friday.
For the fourth quarter, AWS generated $28.7 billion in revenue, slightly shy of Wall Street estimates. Amazon also reported a net sales increase due to leap year effects, adding $1.5 billion. However, its Q1 revenue outlook fell short of analyst expectations, with guidance for $151-155 billion in revenue.
Amazon’s capital expenditures are expected to jump from $75 billion in 2024 to $105 billion in 2025, primarily focused on AI and data center spending. This move is part of the company’s efforts to meet growing demand for AI services.
The company faces increased competition from rivals Microsoft and Google, which also missed their earnings expectations for cloud sales in the fourth quarter. Amazon plans to invest heavily in building out its AI infrastructure capabilities, similar to Microsoft and Google, who are also working on expanding their AI offerings.
Source: https://finance.yahoo.com/news/amazon-stock-falls-after-first-quarter-sales-outlook-disappoints-192245188.html