Catenaa, Saturday, February 08, 2025 – One of the magnificent seven companies Amazon, posted strong fourth-quarter earnings, with revenue rising 10% to $187.8 billion and profits hitting $20 billion, surpassing Wall Street expectations.
However, its stock slipped in after-hours trading after the company projected lower-than-expected revenue for the current quarter.
The e-commerce giant forecasted first-quarter revenue between $151 billion and $155.5 billion, below analysts’ $158.56 billion estimate, citing a significant unfavorable foreign exchange impact. Despite this, Amazon’s core retail business grew 7% year-over-year, generating $75.5 billion in holiday season sales.
Amazon Web Services (AWS), its cloud computing division, saw a 19% revenue increase but slightly missed analyst expectations.
Meanwhile, the company intensified its artificial intelligence push, spending $27.8 billion on infrastructure, primarily for AI and AWS expansion. CEO Andy Jassy emphasized AI’s transformative role, predicting widespread adoption across applications.
Amazon is also taking new trade policies, as President Donald Trump’s recently imposed 10% tariff on Chinese imports could impact its first-party retail business.
Analysts estimate 25% of Amazon’s merchandise comes from China, potentially raising costs. The tariffs may also affect Amazon Haul, its low-cost online storefront designed to compete with Shein and Temu.
Detailed report can be accessed here.
