Amazon ends year on strong note but forecasts weak upcoming quarter

Amazon interrupts Wall Wall expectations with his earnings from the fourth quarter of 2024 on Thursday, but predicts a weak upcoming quarter.

The retail giant ended a year on a strong note, reporting the income of $ 187.79 billion and $ 1.86 per share, surpassing the assessment of analysts in the amount of 187.3 billion dollars. USA and shares prices of $ 1.49.

According to Adobe Analytics, sustainable income takes into account the strong season of festive purchases, which showed 8.7% of the surge of online expenses in November and December. In general, according to Adobe, consumers spent $ 241.1 billion in these two months.

“The festive shopping season was the most successful for Amazon, and we appreciate the support of our customers, sales partners and employees who helped to do this,” said Amazon CEO, Andy Jasi.

Despite higher results, Amazon fell below the score of analysts when it came to sales of the next quarter. The company said that it expected that sales will be from 151 to 155.5 billion dollars, and analysts estimated $ 158.5 billion. The shares fell during non -working hours, and then bounced to the same price as in the previous market.

Wall Street seems to have appreciated measures to reduce costs in Amazon over the past couple of years. Jasi worked to tighten the belt, setting dismissal and reduction in several departments. While in 2024 there were fewer layoffs than past years, the reduction still, according to the visible, had positive financial successes for the profit of Amazon.

During the income on Thursday, Jasi applauded various new innovations focused on artificial intelligence in the company, including the new chip under the name Tranum2. “These advantages are often realized by customers (and business) in a few months, but these are significant factors in this new technological environment,” Jasi said.

Jeff Bezos, the executive chairman of Amazon, also became friendly with Donald Trump after many years of rage. Amazon donated $ 1 million to the presidential fund, and Bezos sat in the front row when Trump was oath.

Since then, Jasi has followed Trump’s leadership in reducing Amazon Dei efforts, and Bezos laid an end to the support of his Climate and Biodiversity Foundation Fund.