Amazon Surpasses Analyst Predictions with Stellar Q4 Performance, Stock Rises Over 7%
02 Fevereiro 2024 - 10:47AM
IH Market News
Amazon (NASDAQ:AMZN) showcased an exceptional performance in the
fourth quarter after Thursday’s market close, exceeding analyst
predictions and providing a solid outlook for the current quarter,
leading to a stock rise of more than 7% in Friday morning’s
trading.
Amazon reported earnings of $1.00 per share, which exceeded the
anticipated 80 cents per share forecasted by LSEG (formerly
Refinitiv). The company’s revenue reached $170.0 billion,
surpassing the $166.2 billion that was projected by LSEG.
Additionally, there were other significant aspects of the report
that Wall Street paid close attention to.
Amazon Web Services (AWS) produced a revenue of $24.2 billion,
meeting the expectations set at the same amount according to
StreetAccount. The advertising sector also showed strong
performance, achieving $14.7 billion in revenue, which went beyond
the $14.2 billion that was anticipated by StreetAccount.
Amazon also announced its projections for the first quarter,
with revenue estimates ranging from $138 billion to $143.5 billion,
representing growth of 8% to 13%. These figures surpassed analyst
expectations, which had anticipated revenue of $142.1 billion,
according to Refinitiv.
Amazon’s exceptional fourth-quarter performance positively
surprised Wall Street, indicating that CEO Andy Jassy’s
cost-control efforts are paying off. The company has made
significant staff reductions and cut less promising investments
while continuing to seek ways to optimize spending across various
areas, including its fulfillment business. Additionally, it
announced cuts in services like Prime Video, MGM Studios, and
Twitch, among others.
Amazon’s total revenue grew by 14% in the fourth quarter,
reaching $170 billion, driven by the Christmas shopping season and
the October Prime Day event, both exceeding the company’s
expectations.
Sales from Amazon Web Services (AWS) rose by 13% in the fourth
quarter to $24.2 billion, aligning with Wall Street’s forecasts.
This represents a slight increase from the previous quarter, where
growth was at 12%, but a slowdown compared to the same period last
year, when sales grew by 20%.
Despite AWS’s growth slowdown over the past year due to reduced
cloud spending by businesses, Amazon’s CFO Brian Olsavsky noted
that cost optimizations are easing and new workloads are
increasing. He highlighted the growing interest in AWS’s generative
AI products, such as the “Q” AI chatbot.
In addition to the results, Amazon also announced the testing of
a generative AI shopping assistant named Rufus, available to a
select group of users in the US.
CEO Andy Jassy stated, “This fourth quarter was a
record-breaking holiday shopping season and capped off a strong
year for Amazon in 2023. As we enter 2024, our teams are delivering
results quickly, and we have much to look forward to with
excitement.”
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