Amazon reports strong earnings for 4th quarter but shares dip due to guidance in 1.

Amazon reported better than expected revenue and surplus for the holiday shopping period on Thursday, but its shares dipped in trade after closing time due to disappointing guidance for the current quarter.

The Seattle-based e-commerce and technology company said its revenue for the October-December period amounted to $ 187.8 billion, a 10% jump compared to the same period in 2023. The profits came out of $ 20 billion, while Earnings per Equity reached $ 1.86, higher than the $ 1.49 that analysts examined by the fact had expected.

But the company said it expected that the revenue for the current quarter would be between $ 151 billion and $ 155.5 billion, lower than the $ 158.56 billion expected by analysts. The guide expects “an unusually large, unfavorable influence” from exchange rates, says the company.

Amazon is the largest online shopping destination in the United States and has long been a recipient of consumer costs during the holidays. As it has done in recent years, the company began to offer campaigns intended to lure early holiday buyers in October. It announced other discounts during the three -month period, including on larger sales days such as Black Friday and Cyber ​​Monday.

Amazon reported on Thursday that it saw $ 75.5 billion in revenue for its online shopping business, an increase of 7% from the same period in 2023.

Across the retail industry, Sales of holiday sales in November and December were better than expected Compared to the previous year as lower inflation on holiday goods, shoppers lured to buy, according to the National Retail Federation. Online shopping also saw record sales levels, reported Adobe Analytics in January.

Sales for Amazon Web Services, the company’s prominent cloud computing device, rose 19% over the fourth quarter. But it fell slightly under the expectations of analysts.

Amazon is one of the biggest players in the competitive tech race around generative artificial intelligence. Like other tech companies, it has increased investment in technology and uses billions to expand data centers that support AI and Cloud Computing.

The company’s quarterly report also comes as the retail industry absorbs a new 10% customs president Donald Trump imposed Chinese imports on Tuesday. Tariffs on Canada and Mexico are on wait for about a month.