Amazon logo on the facade of one of their office buildings located in Silicon Valley
Amazon (Nasdaq: AMZN) is the latest tech giant to report quarterly results that met expectations, but investors were disappointed with its outlook.
The online retailer, streaming and cloud provider posted 4th quarter earnings per share of $1.86 on revenue of $187.7 billion. AWS Q4 revenue came in at $28.7 billion.
“The holiday shopping season was the most successful yet for Amazon,” said Andy Jassy, President and CEO, Amazon.
However, the company offered modest guidance for 1st quarter revenues in the $151 billion and $155.5 billion range while citing that 2024 was a leap year with an extra shopping day.
Amazon is currently the world’s largest cloud provider, but there are concerns that its infrastructure will not have the capacity to meet demand for AI services. Amazon plans to boost capital expenditures from $75 billion in 2024 to $105 billion in 2025, most of which will go toward AI and data centers.
Amazon stock slipped 4% to change hands at $228 a share after hours. The stock was trading at $170 a share a year ago.
