amazon shares down on q4 earnings report

Amazon.com Inc just reported its least profitable fourth quarter since 2014. Shares are trading down in extended hours.

The stock is taking a hit also on weak guidance. In its current financial quarter, Amazon expects to bring in $121 billion to $126 billion of revenue on $4.0 billion in operating profit at the top end of the range.

In comparison, experts had called for $125.09 billion and $4.04 billion, respectively.  

Even more disappointing was the slowdown in cloud computing. Amazon Web Services this quarter generated $21.38 billion in revenue on $5.21 billion of operating income – both well below the estimates.

Year-over-year, the business grew 20% in the holiday quarter versus 27.5% in Q3.   

According to Amazon, it ended the year with a net loss of $2.7 billion, much of which was related to an enormous hit to its stake in Rivian Automotive Inc.

Earned $278 million versus a much higher $14.3 billion a year ago

Per-share earnings also narrowed sharply from $1.39 to 3 cents only

Revenue increased 9.0% on a year-over-year basis to $149.2 billion

FactSet consensus was 17 cents of EPS on $145.71 billion revenue

Ad revenue of $11.56 billion (up 23%) was also better than expected

This is a developing story. Please check back for updates

The post Amazon just reported its least profitable Q4 in years appeared first on Invezz.



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Wajeeh Khan
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