Amazon exceeded Wall Street’s expectations by earning revenue in the fourth quarter of 2024, but it anticipates a decline in the coming quarter.
Finishing the year on a high note, the retail giant reported $187.79 billion in revenue and $1.86 per share, surpassing analysts’ revenue estimates of $187.3 billion and $1.49 per share.
The robust revenues reflect a strong holiday shopping season, with online spending increasing by 8.7% year-on-year in November and December, according to Adobe Analytics. Overall, consumers spent $241 billion over the two-month period, as reported by Adobe.
“The holiday shopping season was Amazon’s most successful ever. We are grateful for the support of our customers, sales partners, and employees who contributed to this success,” stated Andy Jassy, Amazon’s CEO. Read the full statement.
Despite beating expectations, Amazon fell short of analyst sales estimates for the next quarter. The company forecasts sales between $151 billion and $15.5 billion, while analysts had estimated $15.85 billion. Stock prices dropped after hours but recovered to previous levels the following day.
Wall Street has acknowledged Amazon’s cost-cutting measures in recent years. Jassy implemented layoffs and cuts across various departments, resulting in a positive financial impact on Amazon’s revenue.
During the revenue announcement, Jassy highlighted Amazon’s new innovations, particularly in artificial intelligence, such as the new AI chip Trainium2. Jassy emphasized the practical benefits of these technologies in the evolving tech landscape.
Amazon’s executive chairman, Jeff Bezos, has reconciled with Donald Trump after years of criticism. Amazon contributed $1 million to the president’s inaugural fund, and Bezos was present at Trump’s swearing-in ceremony.
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Jassy followed Trump’s lead by scaling back Amazon’s DEI efforts, and Bezos withdrew support for the Climate Change and Biodiversity Fund.
Source: www.theguardian.com
