Amazon stock

Amazon.com Inc. (AMZN) stock wavered in Thursday's extended trading as the market digested a mixed Q4 earnings report.Headlining the quarterly results was a ...

He added that his team is not looking to optimize quarterly results, but instead build the business and maintain customers for the longer term. "But the reality is that we're going to find a way to help our customers spend less money. Jassy also outlined his bullishness on strides the company is making in both grocery and international e-commerce. Shares again made a sharp move as CEO Andy Jassy joined the company's earnings call for the first time. The company anticipates net sales between $121B and $126B for the first quarter of 2023 against a $125.13B Street consensus. (AMZN)](/symbol/AMZN?source=content_type%3Areact%7Csection%3Amain_content%7Csection_asset%3Ameta%7Cfirst_level_url%3Anews%7Csymbol%3AAMZN) [RIVN](/symbol/RIVN?source=content_type%3Areact%7Csection%3Amain_content%7Csection_asset%3Ameta%7Cfirst_level_url%3Anews%7Csymbol%3ARIVN)By: [Kevin P.

Revenue at the company's closely watched Amazon Web Services unit were a little shy of expectations.

](https://www.barrons.com/market-data/stocks/rivn) ](https://www.barrons.com/market-data/stocks/amzn) [

AWS and Amazon's first-quarter forecast also miss analyst estimates amid concerns about cloud growth; CFO says AWS will show 'slower growth rates for the ...

In the fourth quarter, AWS produced operating income of $5.21 billion on revenue of $21.38 billion, with sales growing more than 20% and operating income declining slightly. Amazon reported an operating loss of $2.23 billion on revenue of $34.46 billion overseas, after a loss of $1.63 billion on sales of $37.27 billion a year ago. He noted that AWS revenue growth rates had been hit by customers looking to cut their cloud spending, and “we expect these optimization efforts will continue to be a headwind to AWS growth in at least the next couple of quarters.” [while] continuing to spend on everyday essentials.” Amazon recently announced it would start charging for grocery delivery for Prime members, which could increase revenue from sales of fresh food. Olsavsky said cuts in the company’s physical stores and device businesses would improve operating margins in North America. “But to our best estimations, when we look at the absolute dollar growth year over year, we still have significantly more absolute dollar growth than anybody else we see in this space.” Any slowdown in AWS would hit Amazon’s bottom line as well as its overall top line, and executives’ forecast for the first quarter shows less optimism than Wall Street expected. [was expected to post a loss for the whole year for the first time since 2014](https://www.marketwatch.com/story/amazon-expected-to-post-first-unprofitable-year-since-2014-and-worst-loss-since-the-dot-com-bust-11675197229?mod=article_inline), but worse-than-expected holiday earnings actually led Amazon to the company’s worst annual loss on record. Without those charges, Amazon would have exceeded expectations, and recognizing them in 2022 leaves a cleaner sheet for this year, when Amazon’s ability to return to strong profitability will be the focus of Wall Street. For the year, Amazon produced a net loss of $2.7 billion and revenue of $513.98 billion, up from $469.82 billion a year ago and the company’s first annual sales total to surpass a half-billion dollars. [RIVN, +5.94%](/investing/stock/RIVN?mod=MW_story_quote)stock, which cost Amazon $2.3 billion in net income in the quarter. Revenue increased to $149.2 billion from $137.41 billion a year ago.

Amazon's shares are down after the company reported its latest quarterly results. Here's what the company reported, versus what analysts expected on average ...

Amazon's cloud business reports 20% growth in fourth quarter, missing estimates · While Amazon Web Services is growing faster than its parent company, the ...

Also in the quarter, AWS announced the availability of data center regions in [Spain](https://www.businesswire.com/news/home/20221115006580/en/) and [Switzerland](https://www.businesswire.com/news/home/20221108006274/en/). The standalone AWS operating margin, at 24.3%, has not been this narrow since 2017. In the fourth quarter, AWS generated $21.4 billion in revenue, representing This was the first quarter since at least 2015 in which AWS failed to increase its operating income year over year. But the AWS customer pipeline is very healthy, said Andy Jassy, Amazon's CEO and formerly the head of AWS. [Microsoft's](/quotes/MSFT/) Azure business and [supply-chain](https://www.businesswire.com/news/home/20221129005850/en/), [clean-room](https://www.businesswire.com/news/home/20221129005904/en/) and [security data storage](https://www.businesswire.com/news/home/20221129005895/en/) services at its Reinvent conference. The AWS division ended up with $5.2 billion in operating income for the quarter, almost double the profit number for the full company. Google parent Alphabet reports earnings after the bell on Thursday. Migrations are still scheduled to happen, Jassy said. [Amazon](/quotes/AMZN/) said revenue in its cloud unit increased by 20% in the fourth quarter, a slower pace than analysts had projected and more sluggish than the [27.5% growth rate](https://www.cnbc.com/2022/10/27/aws-earnings-q3-2022.html) in the third quarter. [said last week](https://www.cnbc.com/2023/01/24/microsoft-msft-earnings-q2-2023.html) that revenue from Azure and other cloud services, which the company doesn't report in dollars, grew by 31% from the prior year, down from 35% in the previous period.

Amazon on Thursday reported worse-than-expected fourth-quarter profits, but its revenue beat expectations boosted by sales in its cloud-computing unit AWS, ...

Amid the consumer pullback in online shopping, the company has relied on other profitable areas of its business to boost its revenue. Amazon has been further tightening its budget by eliminating certain parts of its business and laying off workers in the past few months amid rising concerns about whether the U.S. Amazon has been struggling to right-size its business in the past year as consumers pulled back from the pandemic-induced move towards online shopping. The company said Thursday its North America business grew by 13%, but expenses still outpaced growth. It said it expects revenue of between $121 billion and $126 billion during the current quarter. Amazon said it earned $300 million, or 3 cents per share, in the October-December quarter.

Earnings at Alphabet and Amazon miss analysts' estimates. Fiscal first-quarter revenue of $117.2 billion at Apple falls 5% from a year earlier, marking the ...

Stocks making the biggest moves after hours: Apple, Amazon, Ford and more · Apple — The consumer tech stock tumbled 4% in extended trading after the company ...

[Ford](/quotes/F/) — Shares of the automaker tumbled 6% in extended trading after [fourth-quarter earnings](https://www.cnbc.com/2023/02/02/ford-f-earnings-q4-2022.html) fell far short of expectations, despite better-than-expected revenue. [Starbucks](/quotes/SBUX/) — Shares fell about 1% after the coffee-shop chain missed expectations on both per-share earnings and revenue in its fiscal [first quarter](https://www.cnbc.com/2023/02/02/starbucks-sbux-q1-2023-earnings.html). [Qualcomm](/quotes/QCOM/) — Shares of the chipmaker dipped 1.5% in extended trading after Qualcomm reported $2.37 in adjusted earnings per share for its fiscal first quarter. [Amazon](/quotes/AMZN/) — Shares of the e-commerce giant fell more than 3% in extended trading despite [beating revenue estimates](https://www.cnbc.com/2023/02/02/amazon-amzn-earnings-q4-2022.html) for the fourth quarter. [Skechers](/quotes/SKX/) – The shoe company's shares slipped by more than 2% in extended trading after Skechers gave soft guidance on earnings and revenue for its first quarter, as well as weak guidance for the full year. [Cirrus Logic](/quotes/CRUS/) – The semiconductor supplier's shares tumbled 7% in extended trading after the company gave weak guidance on fiscal fourth quarter revenues versus analysts' estimates, according to Refinitiv. [Alphabet](/quotes/GOOGL/) — Alphabet dropped more than 5% in extended trading after the Google parent company [missed expectations](https://www.cnbc.com/2023/02/02/alphabet-googl-earnings-q4-2022.html) on the top and bottom lines for the fourth quarter, according to analyst estimates from Refinitiv. The company beat Wall Street's expectations for the fiscal second quarter, posting earnings of 98 cents per share, excluding items, on revenue of $1.72 billion. [Gilead Sciences](/quotes/GILD/) — Shares of the pharmaceutical company rose 4% after the bell following a stronger than expected fourth-quarter report. The company reported $1.88 in earnings per share on $117.15 billion of revenue. [Atlassian](/quotes/TEAM/) — Shares of Atlassian shed 12% after hours when the software company posted a loss for its latest quarter. Analysts surveyed by Refinitiv were expecting $1.94 in earnings per share and $121.10 billion of revenue.

Shares of Google parent Alphabet are trading 6% lower in after hours. The tech giant reported fourth quarter sales, excluding partner payouts, of $63.1 billion ...

The selloff in the shares of AAA technology behemoths — Apple Inc., Alphabet Inc. and Amazon.com Inc. — that reported quarterly results overnight are ...

[Apple Inc](https://www.marketwatch.com/story/apple-earnings-fall-short-on-underwhelming-sales-of-iphones-and-macs-11675373982?mod=article_inline)., [Alphabet Inc](https://www.marketwatch.com/story/alphabet-shares-dip-on-top-and-bottom-line-miss-11675372797?mod=article_inline). and [Amazon.com Inc](https://www.marketwatch.com/story/amazon-stock-falls-after-earnings-miss-shows-worst-annual-loss-on-record-least-profitable-holiday-quarter-since-2014-11675372658?mod=article_inline). The selloff in the shares of AAA technology behemoths —

Amazon beat revenue expectations for the fourth quarter, but it gave light sales guidance for the first quarter.

[missed estimates](https://www.cnbc.com/2023/02/02/amazon-aws-earnings-q4-2022.html) for the fourth quarter, reflecting a [slowdown](https://www.cnbc.com/2022/12/03/aws-faces-cost-sensitive-customers-at-reinvent-as-economic-fears-mount.html) in business spending. [Advertising revenue](https://www.cnbc.com/2023/02/02/amazons-advertising-business-grew-19percent-unlike-google-meta.html) jumped 19% from a year earlier (23% excluding changes in foreign exchange rates), [again outpacing](https://www.cnbc.com/2023/02/02/amazons-advertising-business-grew-19percent-unlike-google-meta.html) online ad companies like Google, Facebook and Snap. The company has also instituted a hiring freeze in its corporate ranks, cut some projects and paused warehouse expansion in an effort to tame rising expenses. In January, Amazon [said](https://www.cnbc.com/2023/01/18/amazon-set-to-begin-new-round-of-layoffs-affecting-over-18000-people.html) it's eliminating 18,000 jobs among its corporate workforce, after cutting a number of employees [last November](https://www.cnbc.com/2022/11/17/amazon-is-looking-to-trim-headcount-through-a-voluntary-buyout-program.html). The pandemic-fueled e-commerce boom has also fizzled out since shoppers have increasingly returned to brick and mortar retailers. The e-retailer said it expects to post first-quarter revenue between $121 billion and $126 billion, representing year-over-year growth of 4% to 8%. Amazon closed out its slowest year of growth in its quarter century as a public company. On Wednesday, Facebook parent Meta topped estimates and gave an optimistic outlook on its expenses. The stock slid after hours, erasing most its rally from the regular trading day. Analysts were expecting $125.1 billion, according to Refinitiv. The company has been contending with slowing sales as rising gas and food prices forced consumers to pull back discretionary spending. Here are the key numbers:

Amazon's growth prospects have deteriorated, and its profits could be vulnerable as a result.

The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Sales and profits from Amazon Web Services have more than doubled in the last three years alone. Its share price is currently trading below where it was before the pandemic began and yet, the company is considerably larger now than it was back in 2019. Amazon, which is much more labour-intensive than its rivals, has seen its overall workforce more than double in size since the start of the pandemic but now, with earnings under pressure, Amazon is having to reverse this and start trimming the fat after announcing 18,000 job cuts. However, with that representing just a tiny fraction of its workforce, more could be on the horizon if growth continues to stall – especially in ecommerce. Sales have grown just once in the last five quarters and are expected to fall, albeit mildly, once again in the first quarter of 2023. That was the fourth consecutive quarter of slower growth and was slower than what markets had hoped for. One of the biggest concerns for Amazon investors is the slowdown at AWS. Wall Street believes topline growth will continue to slow over the next three quarters before returning back above the 20% threshold in the final quarter of 2023. Ecommerce sales declined over 2% in the latest quarter as the surge in demand seen during the pandemic continues to unwind. Net sales grew 8.6% from the year before in the fourth quarter to $149.2 billion, which came in ahead of the $145.7 billion forecast by Wall Street.

Amazon's revenue grew 9% in the fourth quarter, which beat estimates. AWS posted its slowest-ever revenue growth at 20%.

On the call, management explained that it doubled its fulfillment network in just a couple of years, and it had added the equivalent of a UPS in delivery capabilities to keep up with demand during the pandemic. The company posted operating income of $12.2 billion for 2022, and revenue grew just 9% for the year. With the AWS growth story running out of steam and e-commerce losing billions each quarter, Amazon's fundamentals look weaker than they have in a long time. CFO Brian Olsavsky added that AWS customers have been focused on optimizing costs due to macroeconomic challenges, and that has impacted the growth rate of its cloud business. That slowdown wasn't entirely unexpected, as CFO Brian Olsavsky had warned about headwinds in AWS on the third-quarter earnings call, and the company's guidance called for just 2% to 8% overall revenue growth in Q4, implying challenges in AWS. It posted an operating loss of $10.6 billion for the year outside of AWS.

Despite Amazon's mixed fourth-quarter earnings report, analysts were encouraged by the company's potential for long-term growth and efforts to tame ...

[different for Apple](https://www.cnbc.com/2023/02/03/analysts-stand-by-apple-say-iphone-makers-flywheel-keeps-spinning-despite-disappointing-earnings.html), which [telegraphed that things are getting better](https://www.cnbc.com/2023/02/02/apple-telegraphed-that-things-are-getting-better-after-a-tough-quarter.html). [Both of those](https://www.cnbc.com/2023/02/02/apple-aapl-earnings-q1-2023.html) [companies missed](https://www.cnbc.com/2023/02/02/alphabet-googl-earnings-q4-2022.html) on the top and bottom lines. It enacted a hiring freeze among its corporate ranks, cut some projects, closed [some physical stores](https://www.cnbc.com/2023/02/02/amazon-is-shutting-some-fresh-and-go-stores-as-the-company-cuts-costs.html) and paused warehouse expansion. "We see Alphabet as a more defensive stock in the group in 2023 with more relative earnings stability given utility of search, expense flexibility, healthy margins that will minimize cash flow concerns, and opportunity to support the stock with buybacks," Bank of America's Justin Post said. [Apple](/quotes/AAPL/) and [Alphabet](/quotes/GOOG/), which also reported on Thursday evening. "Taking a step back, it's rare to see Apple miss and guide down in a quarter, but we believe the long-term positives from tonight's report outweigh the short-term negatives," [Morgan Stanley's Erik Woodring wrote](https://www.cnbc.com/2023/02/03/apples-long-term-positives-outweigh-earnings-miss-morgan-stanley.html). They also believe Amazon will prove it can withstand the economic turbulence and can continue to grow in the long term. [Arete Research's Richard Kramer on the outlook for Apple, Amazon and Alphabet](https://www.cnbc.com/video/2023/02/03/richard-kramer-on-the-outlook-for-apple-amazon-and-alphabet.html) Amazon's fourth-quarter revenue increased 9% to $149.2 billion, topping analysts' expected $145.4 billion. [analysts are bullish](https://www.cnbc.com/2023/02/03/analysts-overlook-alphabets-disappointing-quarter-cite-confidence-in-ai-push-as-chatgpt-threat-grows.html) on its prospects for artificial intelligence and highlighted its strong core business. [Amazon Web Services](https://www.cnbc.com/2023/02/02/amazon-aws-earnings-q4-2022.html), which have been dented by the challenging economic environment. [Amazon](/quotes/AMZN/) fell 8% on Friday, a day after the e-retailer [posted](https://www.cnbc.com/2023/02/02/amazon-amzn-earnings-q4-2022.html) soft growth in its retail and cloud computing businesses and gave downbeat guidance.

Shares of Amazon and Alphabet fell in morning trading Friday, while Apple shares were flat, following quarterly reports that showed broad signs of a slowing ...

Wedbush analyst Daniel Ives raised his target to $180 from $175 and kept an “Outperform” rating. Piper Sandler analyst Thomas Champion lowered the firm’s price target on Alphabet to $120 from $122, meaning he expects the stock to gain just about 10% for the rest of the year. Sebastian raised the firm’s price target to $125 from $120 and kept an “Outperform” rating on the shares, stating that the company’s e-commerce results weren’t as bad as feared and pointing to accelerating subscriptions growth from Prime sign-ups and pricing. JPMorgan analyst Samik Chatterjee made the reverse move, cutting his price target to $175 from $180, and stating that Apple’s guidance reflects a “deeper down cycle” for consumer projects like smartphones and personal computers. Amazon shares, which rallied 28% year to date, dropped $5.61, or 5%, to $107.30. Barclays analyst Ross Sandler, however, raised his price target to $160 from $150, with an “Overweight” rating, stating in a note to clients that the company “sounded very constructive on efficiency improvements going forward,” according to TheFly.com.

related investing news · Here are Friday's biggest analyst calls: Apple, Ford, Amazon, Alphabet, Meta. CNBC Pro · Here's a roundup of quarterly earnings reports ...

[Upstart](/quotes/UPST/) — Shares of the AI lending platform dropped 7.3% after [Loop downgraded the stock](https://www.cnbc.com/2023/02/03/wall-streets-top-analyst-calls-include-aapl-amzn-tsla.html) to hold from buy. [Starbucks](/quotes/SBUX/) — Shares of the coffee chain fell more than 4.4% after the company [missed Wall Street expectations](https://www.cnbc.com/2023/02/02/starbucks-sbux-q1-2023-earnings.html) for quarterly revenue and reported a hit in its international sales from the Covid surge in China. [Ford](/quotes/F/) – Ford Motor shared shed 7.6% after [fourth-quarter earnings fell short](https://www.cnbc.com/2023/02/02/ford-f-earnings-q4-2022.html) of both Wall Street and its own guidance. [Apple](/quotes/AAPL/) – The iPhone maker's stock gained 2.4% after analysts said they could [look past the company's difficult quarter.](https://www.cnbc.com/2023/02/03/analysts-stand-by-apple-say-iphone-makers-flywheel-keeps-spinning-despite-disappointing-earnings.html) Apple [missed profit and revenue estimates](https://www.cnbc.com/2023/02/02/apple-aapl-earnings-q1-2023.html) for its latest quarterly print. Deutsche Bank also [downgraded shares of the automaker to a sell rating](https://www.cnbc.com/2023/02/03/deutsche-bank-downgrades-ford-cites-ugly-fourth-quarter-and-aggressive-2023-guidance.html), citing the fourth-quarter miss and doubt over Ford's 2023 revenue guidance. [Amazon](/quotes/AMZN/) – The e-commerce giant's stock tumbled 8.4% [despite a revenue beat](https://www.cnbc.com/2023/02/02/amazon-amzn-earnings-q4-2022.html). The company also reported a [slowdown in growth](https://www.cnbc.com/2023/02/02/amazon-aws-earnings-q4-2022.html) within its cloud business. [Generac](/quotes/GNRC/) — The battery backup company slid 6.5% after Guggenheim downgraded the stock to neutral from buy. Despite the tough earnings report, [ Bank of America reiterated the stock as a buy](https://www.cnbc.com/2023/02/03/wall-streets-top-analyst-calls-include-aapl-amzn-tsla.html), saying that they expect results in 2023 to be more encouraging. ](https://www.cnbc.com/2023/02/02/alphabet-googl-earnings-q4-2022.html)Alphabet's posted earnings per share of $1.05 missed Refinitiv analyst consensus estimates of $1.18 per share. [Clorox](/quotes/CLX/) – Shares of Clorox rose 9.8% after the cleaning products company posted an earnings beat. [Alphabet](/quotes/GOOGL/) — The tech giant saw its shares drop 2.8% following the aftermath of its [disappointing earnings report.

Ford said Thursday that it has sold almost its entire Rivian stake. It's paying a special dividend with the cash raised.

](https://www.barrons.com/market-data/stocks/amzn) [ ](https://www.barrons.com/market-data/stocks/rivn)

Amazon.com, Inc. beat on the topline for its Q4'22, but AMZN missed on earnings. Click here to read my earnings analysis of AMZN stock.

Amazon's valuation multiplier is that of a growth stock, but the company is now growing only in the single digits. The near-term growth outlook for Amazon is not good, and it indicates that weakening topline growth and the trajectory in Cloud remain two key risks for Amazon and its stock. With growth slowing down more broadly and now including Amazon Web Services, there is a considerable chance that shares of Amazon will resume their downwards revaluation. [4-8% in the first quarter](https://s2.q4cdn.com/299287126/files/doc_financials/2022/q4/Q4-2022-Amazon-Earnings-Release.pdf) and total revenues of between $121.0B and $126.0B, which is not an improvement over Q4'22 results. The growth rate of 20% was also only half of what it was just in the year-ago quarter: in Q4'21, Amazon Web Services grew its revenues at a 40% year-over-year rate. Slowing AWS revenue growth is a problem for Amazon chiefly because Amazon Web Services is the fastest-growing segment within Amazon, and its operating profits are responsible for all of the company's consolidated operating income. Amazon reported net revenues of $149.2B for the fourth quarter, showing a year-over-year growth rate of 9%. In Q4'22, Amazon reported just $2.7B in operating income, showing a decline of 21% year over year. [AMZN](https://seekingalpha.com/symbol/AMZN)) submitted its [earnings sheet](https://seekingalpha.com/news/3931510-amazon-non-gaap-eps-of-0_03-misses-0_14-revenue-of-149_2b-beats-3_43b) for the fourth quarter yesterday, and the e-Commerce company disappointed in a number of ways. The international e-Commerce business had revenues of $34.5B, showing a year-over-year decrease of 8%. Amazon Web Services grew its segment revenues to $21.4B, showing a year-over-year growth rate of 20%. With Cloud now also weakening, the risk profile for Amazon remains skewed to the downside!