Amazon ends year on strong note but forecasts weak upcoming quarter | Amazon

Amazon outdid Wall Street’s expectations with its earnings from the fourth quarter of 2024 on Thursday but forecast a weak upcoming quarter.

The retail giant ended the year on a strong note, reporting $187.79bn in revenue and $1.86 per share, beating analysts’ estimates of revenue of $187.3bn and share price at $1.49.

The robust earnings take into account the strong holiday shopping season, which showed a 8.7% year-over-year surge of online spending in November and December, according to Adobe Analytics. In all, according to Adobe, consumers spent $241.1bn in those two months.

“The holiday shopping season was the most successful yet for Amazon and we appreciate the support of our customers, selling partners, and employees who helped make it so,” Amazon’s CEO, Andy Jassy, said in a statement.

Despite the better-than-expected results, Amazon fell below analyst estimates when it came to next quarter’s sales. The company said it expects sales to be between $151bn and $155.5bn, while analysts estimated $158.5bn. Shares fell in after-hours trading and then bounced back to the same price as the previous market close.

Wall Street has appeared to appreciate the cost-cutting measures at Amazon over the past couple of years. Jassy has been working to tighten the belt by instituting layoffs and cuts across several departments. While 2024 had less layoffs than years past, the downsizing still appears to have had positive financial gains for Amazon’s bottom line.

During Thursday’s earnings, Jassy applauded various new innovations centered on artificial intelligence at the company, including a new AI chip called the Trainium2. “These benefits are often realized by customers (and the business) several months down the road, but these are substantial enablers in this emerging technology environment,” Jassy said.

Jeff Bezos, Amazon’s executive chairman, has also become friendlier with Donald Trump after years of acrimony. Amazon donated $1m to the president’s inaugural fund and Bezos sat in the front row as Trump was sworn in.

Jassy has since followed Trump’s lead in cutting Amazon’s DEI efforts, and Bezos has ended support for his climate change and biodiversity fund.