Amazon posted sales in the last quarter of last year that reached Wall Street’s estimates on Thursday, as a strong holiday season increased its retail business, but investors deducted actions due to weakness in the Cloud Informatics Unit .
Amazon’s shares fell 3.5% in extended trade after the report, eraseing the value of the stock market worth about $ 90 billion.
The company’s cloud unit, Amazon Web Services (AWS), reported a 19% increase in revenue to $ 28.79 billion, highlighting $ 28.87 billion estimates, according to data compiled by LSEG. Amazon joins Cloud Microsoft and Google’s smaller providers in reporting poor Cloud numbers.
The weakness of the clouds comes at a time when investors have increased more and more unbearable at the Multibillion Big Tech capital costs and are hungry for returning from large investment.
Competitors Microsoft and Google Alphabet Parents both posted by slowing the cloud growth in the fourth quarter of last year, sending lower shares. Companies, along with Meta platforms, said the costs to develop infrastructure for artificial intelligence software were behind the large estimated capital costs for 2025, a total of about $ 230 billion between them.
However, Amazon’s retail business helped compensate for the weakness of the Cloud, with the company reporting 7% internet sales to 75.56 billion dollars. This is compared to estimates of $ 74.55 billion.
The company reported revenue of $ 187.8 billion in the fourth quarter, compared to the average analyst rating of $ 187.30 billion, according to data compiled by LSEG.
Advertising sales, a metric closely viewed, increased 18% to $ 17.3 billion. This is compared to the average estimate of $ 17.4 billion.
Net revenue nearly doubled to $ 20 billion from $ 10.6 billion a year ago. The retail of Seattle reported $ 1.86 per share income, compared to $ 1.49 per share expectations.
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