Amazon profit report (AMZN) Q4 2024

Amazon I mentioned The best profits and revenues are expected for the fourth quarter, but they gave disappointing guidance for the current period. The stock has decreased more than 5 % in extended trading.

Here are the numbers:

• Profits: $ 1.86 for. $ 1.49 for the expected stock, according to Lseg
• profit: 187.79 billion dollars for $ 187.30 billion expected, according to LSEG

Wall Street also looks at these main numbers:

• Amazon web services: 28.8 billion dollars compared to 28.8 billion dollars, according to the street
• propaganda: 17.3 billion dollars for $ 17.4 billion, according to the street account

Amazon said that sales in this quarter are expected to range between 151 billion dollars and 155.5 billion dollars. Analysts expected $ 158.5 billion, according to Lseg.

The company said: “This guidance expects an extraordinary and unacceptable impact” from foreign exchange rates. Amazon said the effect is 2.1 billion dollars, or 1.5 %.

The US dollar index – which measures Greenback against a basket of competitors – has reached its highest level in more than two years last month, before President Donald Trump’s inauguration. The dollar rose steadily from late November to mid -January, and it has since decreased slightly.

Based on Amazon expectations, the company only expects revenue growth from 5 % to 9 % in the first quarter. At the low end of the range, it will smell this slower growth at all. The Amazon went public in 1997.

In the fourth quarter, revenues increased by 10 % from $ 170 billion in the same quarter of the previous year.

The net income doubles approximately $ 20 billion, or $ 1.86 per share, from 10.6 billion dollars, or $ 1 per share, a year ago. Jassy has been working in a campaign to reduce costs since late 2022. In 2022 and 2023, the company has registered more than 27,000 employees from the company. Discounts continued in jobs in 2024 and extended this year.

Amazon managed to enhance profits by reducing expenses and continuing strength in high -marginal cloud works. The Amazon operating margin, the profit that it left after calculating the costs of business management, increased to 11.3 % in the period from 11 % in the previous quarter and 7.8 % in the fourth quarter of 2023.

Sales in the Amazon cloud department served as hair estimates less than unanimity estimates, but they grow faster than the same quarter of last year. Revenue grew 19 % during a quarter of 13 % in the past year. AWS still grows as soon as possible like its competitors. Revenue from Azure and other cloud services revenues in Microsoft 31 % grow. alphabet The cloud revenue increased 30 %.

Amazon capital expenses amounted to $ 27.8 billion in a quarter, compared to $ 14.6 billion a year ago. The company was plowing billions of dollars in data and equipment centers such as Nafidia Graphics processing units to operate artificial intelligence products. The company responds to the increasing competition in artificial intelligence from competitors including Openai’s Chatgpt, Google Gemini and Microsoft from Microsoft, as well as AI’s starting, which is Amazon among its investors.

The Amazon CEO of Amazon highlighted the company’s profits, including a new set of artificial intelligence models, called Nova, and local training flakes. In the last quarter, Jassi said that Amazon planned to spend about $ 75 billion on Capex in 2024 and more of this year as part of a batch to launch more generated services.

“These benefits are often achieved by clients (and business) several months of the road, but these great factors in this emerging technology environment are excited to know what customers are building,” Jassi said in a statement.

Technology companies are under pressure from investors to demonstrate great artificial intelligence spending worthy of attention, especially after the launch of the Chinese R1 DEPSEK model. Deepseek claims that it took only two months and less than 6 million dollars to develop the R1, which says Openai’s Openai’s Open. This announcement of Wall Street and the Silicon Valley surprised, as it challenges the assumption that technology companies must spend heavily on chips and data centers in order to build models of advanced artificial intelligence.

Advertising revenues increased by 18 % to $ 17.3 billion, as brands continue to spend significantly to determine prominent sites on the Amazon application. In recent years, Amazon has emerged as one of the best digital advertising companies, only behind the alphabet Dead In the United States

As of Thursday, Amazon shares have increased by 9 % for this year. They rose 44 % in 2024, and they issued the Nasdaq Stock Exchange, which gained 29 %.

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