Amazon has announced better-than-expected earnings and revenue for the fourth quarter of last year, yet its forecast for the current quarter hints at a slowdown in growth. The e-commerce giant reported earnings per share of $1.86, surpassing analysts’ expectations of $1.49. Total revenue reached $187.79 billion, marginally exceeding the anticipated $187.30 billion, according to LSEG.
The company's cloud division, Amazon Web Services (AWS), recorded sales of $28.8 billion, aligning with analysts' estimates and marking a 19% growth year over year. Despite AWS's robust performance, advertising sales fell slightly short, coming in at $17.3 billion against the expected $17.4 billion.
Looking ahead, Amazon projects its first-quarter sales to range between $151 billion and $155.5 billion. This represents a revenue growth of just 5% to 9%, a noticeable deceleration compared to the 13% growth experienced in the same period last year. The company attributes this anticipated slowdown to an estimated impact of $2.1 billion on sales, corresponding to a 1.5% reduction.
The broader economic climate also plays a role in Amazon's outlook. The U.S. dollar index recently reached its highest point in over two years, driven by a steady climb from late November through mid-January, before slightly declining. Such currency fluctuations can influence international sales and revenue.
Amazon, which went public in 1997, continues to navigate the challenges of a dynamic market environment while focusing on long-term growth strategies. Despite the cautious revenue forecast, the company's strong fourth-quarter performance underscores its resilience and adaptability in an increasingly competitive landscape.