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 is what the company informed compared to what Wall Street expected:

• Arrow’s profits: $ 1.86 for. $ 1.49 expected, according to LSEG
• profit: 187.79 billion dollars for $ 187.30 billion expected, according to LSEG

Wall Street also looks at these main revenue 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

The company said that Amazon expects that this quarter sales will 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 the competitors’ basket – has reached its highest level in more than two years last month, before President Donald Trump opening. The dollar rose steadily from late November to mid -January, and it has since decreased slightly.

Based on Amazon forecast, the company expects revenues from 5 % to only 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. Andy Jaci, CEO of Amazon, has been working in a campaign to reduce costs since late 2022. The company has handed over more than 27,000 companies from companies in 2022 and 2023. The cuts in jobs continued in 2024 and extended this year.

Amazon managed to enhance profits by reducing expenses and through its continuous power in high -marginal clouds. The Amazon operating margin, the profit that it left after calculating the costs to operate the business, joined to 11.3 % in the period from 11 % in the previous quarter and 7.8 % in the fourth quarter of 2023.

Sales in the cloud department in Amazon Hair was less than unanimity estimates, but grew faster than the same quarter of last year. Revenue increased 19 % during a quarter compared to a growth of 13 % a year ago. AWS still grows as soon as possible like its competitors. Revenue from Azure and other cloud services in Microsoft 31 % rose. alphabet The cloud revenue increased 30 %.

The total capital expenses of Amazon reached $ 27.8 billion in a quarter, compared to $ 14.6 billion a year ago. The company pumped billions of dollars in data and equipment centers such as Nafidia The processors to run 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.

Amazon, financial manager, Brian Olsafski, said that the company expects the capital expenditures to 100 billion dollars in 2025, increasing the spending of approximately $ 83 billion in 2024. Olsafiski said the jump in spending is related to AWS, including AWS, including. This is to support the demand for our services, as well as the technology infrastructure to support our northern and international sectors.

Jaci highlights the company’s investments in issuing profits, including a new set of artificial intelligence models, called Nova, and local training flakes.

“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 the Openai’s O1 competitors. This advertisement surprised Wall Street and Silicon Valley, as it challenges the assumption that technology companies must be touched on chips and data centers in order to build models of advanced artificial intelligence.

Advertising revenues increased 18 % to 17.3 billion dollars, as the brands continue to spend significantly to determine the prominent positions 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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