Amazon Reports Strong Q4 2024 Earnings with Significant Growth in AWS and Overall Sales
Amazon.com, Inc. (NASDAQ: AMZN) announced its fourth-quarter financial results for 2024, reporting a 10% increase in net sales to $187.8 billion, up from $170 billion in the same period last year. Excluding the $0.9 billion unfavorable impact from foreign exchange rates, net sales grew 11%. The company’s operating income surged to $21.2 billion, nearly doubling from $13.2 billion in Q4 2023, driven by strong performance across its North America, International, and Amazon Web Services (AWS) segments. AWS, in particular, saw a 19% year-over-year revenue increase to $28.8 billion, while North America and International segments grew by 10% and 8%, respectively.
Amazon’s net income for the quarter rose to $20 billion, or $1.86 per diluted share, compared to $10.6 billion, or $1.00 per diluted share, in Q4 2023. CEO Andy Jassy highlighted the company’s innovation, particularly in AWS, with the introduction of new AI tools like the Trainium2 chip and Amazon Nova foundation models. He also noted the success of the holiday shopping season, which saw record-breaking sales and faster delivery speeds for Prime members.
However, Amazon’s revenue forecast for Q1 2025 disappointed investors, with projected sales between $151 billion and $155.5 billion, below analysts’ expectations of $158.5 billion. The company attributed the weaker guidance to a $2.1 billion unfavorable impact from foreign exchange rates, which could result in revenue growth of just 5% to 9%—the slowest on record if the low end is realized.
Amazon also announced plans to significantly increase capital expenditures in 2025, primarily to support AWS and AI initiatives, with spending expected to reach $100 billion. This aligns with broader industry trends as tech giants like Microsoft, Google, and Meta ramp up investments in AI infrastructure. Despite the cautious outlook, Amazon’s stock has gained 9% year-to-date, reflecting investor confidence in its long-term growth prospects.
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Bloomberg delivers business and markets news, data, analysis, and video to the world, featuring stories from Businessweek and Bloomberg News
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