Amazon's Q4 Success Overshadowed by Subdued Q1 Outlook
Seattle-based Amazon announced robust fourth-quarter earnings, with revenues reaching $187.8 billion—a 10% increase from the previous year. Profits soared to $20 billion, and earnings per share were $1.86, surpassing analysts’ expectations of $1.49 surveyed by FactSet. Despite these positive results, Amazon’s stock faced a decline in after-hours trading due to a less optimistic forecast for the first quarter of the year.
For Q1, Amazon projected revenues between $151 billion and $155.5 billion, below the anticipated $158.56 billion analysts had predicted. The company cited a significant negative impact from foreign exchange rates as a factor influencing their guidance.
Amazon remains the leading e-commerce platform in the U.S., capitalizing on consumer spending during the holiday season. In line with its recent strategies, the company launched early promotions in October to attract holiday shoppers and offered additional discounts during major shopping events such as Black Friday and Cyber Monday.
