AMZN Amazon's revenue increased by 10% year-over-year, reaching $187.8 billion—$0.5 billion above expectations—while earnings per share (EPS) came in at $1.86, exceeding forecasts by $0.38. Operating income soared 61% to a record $21.2 billion, driven by efficiency improvements and strong cloud business performance. AWS revenue rose 19% to $28.8 billion, maintaining steady growth despite capacity challenges caused by chip supply and power constraints, which are expected to ease in the latter half of 2025.
However, Q1 guidance fell short of expectations, with projected revenue between $151 billion and $155.5 billion (compared to the anticipated $158.6 billion) and operating income guidance ranging from $14 billion to $18 billion ($18.4 billion expected). Management attributed the weaker outlook to foreign exchange headwinds ($2.1 billion impact), a leap-year comparison, and infrastructure investments.
Looking ahead, Amazon plans to invest over $100 billion in 2025, focusing on AI, custom chips, and data centers to support rising demand. CEO Andy Jassy referred to Amazon as an “AI supermarket,” but near-term concerns about cloud growth and margins have dampened investor confidence. Nonetheless, with a strong balance sheet and $116 billion in operating cash flow for FY24, Amazon is well-positioned to fund its expansion efforts.
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