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Amazon announces better than expected results, with turnover up 14%


Amazon CEO Andy Jassy speaks at the Bloomberg Technology Summit in San Francisco on June 8, 2022.

David Paul Morris | Bloomberg | Getty Images

Amazon THURSDAY reported fourth-quarter results that beat analyst estimates and gave good guidance for the current quarter. The stock rose more than 8% in extended trading.

Here are the results:

  • Earnings: $1.00 per share versus 80 cents per share expected by LSEG, formerly known as Refinitiv
  • Income: $170.0 billion versus $166.2 billion expected by LSEG

Wall Street is also watching several other numbers from the report:

  • Amazon Web Services: $24.2 billion versus $24.2 billion, according to StreetAccount
  • Advertisement: $14.7 billion versus $14.2 billion, according to StreetAccount

Amazon said first-quarter sales would be between $138 billion and $143.5 billion, representing growth of 8 percent to 13 percent. Analysts expected revenue of $142.1 billion, according to Refinitiv.

Amazon easily beat Wall Street’s profit expectations, indicating that CEO Andy Jassy’s efforts to control costs are paying off. The company laid off 27,000 employees between late 2022 and mid-2023 and pulled the plug on some of its less proven bets. The company continues to look for ways to reduce expenses in other areas, such as its fulfillment operations. In January, it announced cuts at Prime Video, MGM Studios and Twitch, among other units.

Revenue jumped 14% to $170 billion in the fourth quarter. The period reflects results from the holiday shopping season and Amazon’s Prime Day event in October, both of which the company said exceeded its expectations.

“This fourth quarter was a record-breaking holiday shopping season and capped off a strong 2023 for Amazon,” CEO Andy Jassy said in a statement. “As we enter 2024, our teams are delivering at a rapid pace, and we have many reasons to be excited ahead of us.”

Sales at AWS rose 13% in the fourth quarter to $24.2 billion, in line with Wall Street forecasts. This marks a slight increase compared to the previous quarter, when sales increased by 12%but this is a slowdown compared to last year, when sales increased by 20%.

Over the past year, AWS’s growth has slowed as companies cut back on cloud spending. But Amazon Chief Financial Officer Brian Olsavsky told reporters Thursday that the company is seeing those cost optimizations decline and new workloads increasing. He said there is “a lot of interest” in AWS’s generative artificial intelligence products, such as “Q,” an AI chatbot aimed at businesses.

Before publishing its results on Thursday, Amazon announcement an AI-powered generative sales assistant, called Rufus, which it is testing with a subset of users in the United States

Amazon’s profitable advertising unit saw sales increase 27% to $14.7 billion. Last month, the company began running ads on Prime Video content, part of a plan by analysts that will generate substantial new revenue for the company. Olsavsky said the company has seen “a lot of enthusiasm” from advertisers, but that Amazon plans to keep ad loads low.

This story is developing. Check back for updates.


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