14 sources·Business

Amazon Surpasses Q4 Expectations but Poor Q1 Forecast Leads to Stock Dip

Amazon's Q4 earnings beat analyst expectations, yet a disappointing Q1 revenue guidance caused a drop in stock price. Foreign exchange impacts are significant.

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Despite Amazon's impressive earnings report for Q4, the stock market's reaction illustrates a profound concern regarding the company's first-quarter outlook, overshadowing its holiday success.
Amazon reports strong earnings for Q4, but stocks dip due to outlook for the first quarter
ABC News·1M
Reliable
This source consistently reports facts with minimal bias, demonstrating high-quality journalism and accuracy.
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Center
This outlet is balanced or reflects centrist views.
Despite a weaker-than-expected first-quarter forecast and higher capital expenditures, the overall strength in Amazon's revenue growth and margin improvement suggests that the company's long-term potential remains robust, warranting continued investment.
Amazon's quarterly beats took a back seat to a couple dings we're not going to sweat
CNBC·1M
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Center
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The constraints on capacity, stemming from supply chain issues and rising demand, indicate that while AWS is making significant strides, the potential for even more rapid growth remains curtailed, highlighting an ongoing struggle in the cloud industry.
Amazon CEO says cloud business would have grown faster if it had more AI chips, power, and server components
Business Insider·1M
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Center
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Despite some concerns over forward guidance, the potential for significant growth in Amazon's stock remains strong as it outpaces rivals like Walmart and continues to innovate within its cloud and retail sectors.
Amazon Surpasses Walmart in Revenues for First Time
Epoch Times·1M
Mixed Reliable
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Right
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Despite impressive earnings that surpassed Wall Street's expectations, Amazon's outlook for the upcoming quarter reveals potential challenges ahead, highlighting a juxtaposition of success and caution.
Amazon ends year on strong note but forecasts weak upcoming quarter
The Guardian·1M
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Leans Left
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The disappointing performance in Amazon's cloud computing unit and the underwhelming forecasts have sparked concern among investors, reflecting a broader unease with Big Tech's spending spree amidst mounting pressures for tangible returns.
Amazon shares slide as weak revenue outlook, AI spending rattle investors
New York Post·1M
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Leans Right
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The ongoing struggles of Amazon reflect the challenges many companies face as they invest heavily in artificial intelligence amidst mixed economic signals, underscoring a cautious yet transformative era ahead.
Amazon Forecasts a Profit Miss on Rising AI Spending
Bloomberg·1M
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Center
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Despite exceeding revenue and profit expectations for the holiday period, Amazon's disappointing guidance for the current quarter underscores the challenges it faces in maintaining growth amid external pressures.
Amazon reports strong earnings for Q4, but stocks dip due to guidance for the 1st quarter
Associated Press·1M
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Center
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Investors are navigating a mixed bag of corporate earnings, keeping a cautious eye on Amazon's upcoming report, which could significantly impact sentiment given the recent volatility surrounding AI investments.
Wall Street Ends Mixed in Choppy Trading
Newsmax·1M
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Right
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Feb 6th, 2025, 9:24 PM ET

Summary

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Amazon reported strong Q4 earnings with revenue of $187.8 billion and profits of $20 billion, surpassing estimates during the holiday shopping season. Despite these gains, the company set a disappointing revenue outlook for Q1, forecasting between $151 billion and $155.5 billion against the expected $158.5 billion, primarily due to unfavorable foreign exchange impacts estimated at $2.1 billion. AWS saw a 19% growth, slightly below expectations, hindered by capacity constraints. Amazon plans to invest $100 billion in capital expenditures in 2025, focusing heavily on AI and cloud infrastructure, with CEO Andy Jassy expressing confidence in long-term growth opportunities.

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