Amazon (AMZN) reported its fourth quarter results after the bell on Thursday, beating on the top and bottom line, but provided worse than anticipated Q1 guidance. Shares of Amazon fell on the news.
Amazon's earnings come after cloud rivals Microsoft (MSFT) and Google (GOOG, GOOGL) missed on expectations for cloud sales in the quarter. Microsoft posted revenue of $40 billion, with Wall Street anticipating $41.1 billion, and Google reported sales of $11.9 billion. Analysts were looking for $12.1 billion.
Both companies blamed their cloud misfires on a lack of capacity to meet demand for AI services.
Amazon is the world's largest cloud provider and, like Microsoft and Google, is furiously investing in building out its AI infrastructure capabilities to meet demand. In Q3, CEO Andy Jassy told shareholders the company planned to spend $75 billion on capital expenditures in 2024, and even more in 2025.
For Q4, Amazon posted earnings per share of $1.86 on revenue of 187.7 billion. Analysts were anticipating EPS of $1.50 on revenue of $187.3 billion. The company saw EPS of $1.00 and revenue of $169.9 billion in the same period last year. AWS revenue came in at $28.7 billion, just shy of expectations of $28.8 billion.
Amazon's guidance for Q1, meanwhile, was well short of the midpoint of Wall Street's outlook. The company says it will see Q1 revenue of between $151 billion and $155 billion. Analysts were anticipating $158 billion.
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