Seattle, WA – Amazon’s stock took a hit following its latest earnings report, as the company’s weaker-than-expected first-quarter sales outlook overshadowed its strong Q4 performance. Despite reporting better-than-expected revenue and profits for the fourth quarter of 2024, concerns over slowing growth and macroeconomic challenges led to a decline in investor confidence.
According to Yahoo Finance, Amazon’s stock fell sharply in after-hours trading, with analysts citing its cautious guidance for Q1 2025 as the primary factor. The company projected first-quarter revenue between $138 billion and $143 billion, slightly below Wall Street estimates, raising concerns that consumer spending and e-commerce demand may be slowing.
Despite this outlook, Amazon’s Q4 earnings exceeded expectations, with the company reporting $170 billion in revenue, marking a 13% year-over-year increase. CNBC noted that Amazon’s cloud computing division, Amazon Web Services (AWS), remained a key driver of profitability, generating $24.2 billion in revenue, an increase of 14% from the previous year.
CEO Andy Jassy acknowledged the uncertain economic climate but remained optimistic about long-term growth, citing investments in AI-powered tools, logistics expansion, and digital advertising as future revenue streams. However, with inflation concerns and cautious consumer spending, Amazon faces challenges in maintaining its pandemic-era growth trajectory.
As Amazon navigates shifting market conditions, analysts predict volatility in its stock performance in the coming months, particularly as investors reassess the company’s growth potential amid changing economic conditions.
