Amazon (AMZN) Q4 Revenue Report 2024
Amazon It has been reported Although there were better revenue and revenue than expected in the fourth quarter, the current period gave us disappointing guidance. The stock slipped over 5% in extended trading.
Here’s what the company reported compared to what Wall Street was expecting:
- Earnings per share: $1.86 vs. According to LSEG, $1.49 is expected
- Revenue: According to LSEG, it is expected to be $187.9 billion vs. $18.73 billion
Wall Street is also considering these major revenue numbers.
- Amazon Web Services: According to StreetAccount, $28.8 billion vs $28.8 billion
- advertisement: According to StreetAccount, $17.3 billion vs $17.4 billion
Amazon expects this quarter to range from $151 billion to $155.5 billion, the company said. According to LSEG, analysts were expecting $158.5 billion.
“This guidance predicts an unusually large and unfavorable impact from the foreign exchange rate,” the company said. The impact amounts to $2.1 billion (1.5%), Amazon said.
US Dollar Index – Measuring the greenback against rival baskets – Last month, it reached its highest level over two years ago. President Donald Trump Inauguration ceremony. The dollar rose steadily from late November to mid-January, then fell slightly.
Based on Amazon’s forecast, the company expects revenue growth in the first quarter to only 5% to 9%. At the low end of range, it marks the slowest growth on record. Amazon was released in 1997.
Fourth quarter revenues rose 10% from $170 billion in the same period last year.
Net income nearly doubled from $10.6 billion a year ago, or one share per share, to $1.86 per share. Amazon CEO Andy Jassy has been taking part in a cost-cutting campaign since late 2022. The company fired more than 27,000 corporate employees in 2022 and 2023. Employment cuts continued in 2024, and this year was extended.
Amazon has been able to cut costs and strengthen its profits through the ongoing strength of its margin cloud business. Amazon’s operating income is the profit left after accounting for the expense of operating the business, rising from 11% in the last quarter and 7.8% in the fourth quarter of 2023 to 11.3%.
Sales in Amazon’s cloud division Her hair was below consensus estimates, but she grew faster than the same period last year. Revenues rose 19% during the quarter compared to 13% growth a year ago. AWS is not growing as fast as its competitors. Revenue from Azure and other cloud services Microsoft A rise of 31%. alphabet Cloud revenues increased by 30%.
Amazon’s capital expenditure totaled $27.8 billion during the quarter, compared to $14.6 billion a year ago. The company is sending billions of dollars into data centers and other equipment. nvidia Processors that enhance artificial intelligence products. The company is responding to growing competition for AI generated from rivals including Openai’s ChatGPT, Google’s Gemini, Microsoft’s Copilot, and AI startup humanity, and counts Amazon as investors.
Amazon CFO Brian Olsavsky said the company expects to raise capital expenditures to $100 billion in 2025 from approximately $83 billion in 2025. Orsavsky said it was “mainly related to AWS, which includes supporting the demand for AI services.” High-tech infrastructure to support North American and international segments. ”
Jassy highlighted AI investments in revenue releases, including a set of new AI models called Nova and its homemade training chips.
“These benefits are often realized by customers (and businesses) a few months away, but these are substantial enablers in this emerging technology environment and we look forward to what our customers will build.” Jassy said in a statement.
Tech companies are under greater pressure from investors to prove their big AI spending is worth it, especially following the launch of the R1 model of Chinese startup DeepSeek. Deepseek claims it took only two months to develop the R1, and it cost less than $6 million. The announcement surprised Wall Street and Silicon Valley, challenging the assumption that tech companies must spend heavily on chips and data centers to build cutting-edge AI models.
Ad revenue increased Brands continue to spend a lot of money on prominent positioning in Amazon’s apps, which ranges from 18% to $17.3 billion. In recent years, Amazon has emerged as one of the top digital advertising companies behind Alphabet and Alphabet alone Meta In the US
As of the end of Thursday, Amazon’s stock had risen 9% per year. They rose 44% in 2024, breaking through the Nasdaq and earning 29%.