The Amazon share falls after sales prospects from the first quarter draws drawers

On By Littum

Amazon (Amzn) reported its results in the fourth quarter after Thursday and hit on top and bottom line, but delivered worse than expected Q1 guide.

The Amazon share fell more than 3% on the news.

Amazon’s Guide to 1st quarter was shortly after the center of Wall Street’s views. The company says it sees Q1 revenue of between $ 151 billion and $ 155 billion. Analysts expected $ 158 billion.

During the company’s earnings call, Amazon CEO Andy Jassy said the company expects to spend approx. $ 105 billion in capital costs in 2025, the majority of which will go to AI and data center expenses. It’s a big leap from the $ 75 billion used by the company by 2024.

The AWS turnover came at $ 28.7 billion, just shy for expectations of $ 28.8 billion.

“This guide expects an unusually large, adverse effect of about $ 2.1 billion or 150 basic points from exchange rates,” the company said in a statement. “As a reminder, the impact of the first quarter of 2024 added the impact of a jumping year about 1.5 billion dollars in net sales.”

Amazon’s earnings come after Cloud Rivals Microsoft (MSFT) and Google (Goog, Googl) missed the expectations of cloud sales in the quarter. Microsoft had a $ 40 billion revenue, with Wall Street expected $ 41.1 billion, and Google reported sales of $ 11.9 billion. Analysts were looking for $ 12.1 billion.

Both companies blamed their Sky Misbreak a lack of capacity to meet the demand for AI services.

Amazon is the world’s largest sky provider and, like Microsoft and Google, invests furiously in building its AI infrastructure features to meet demand. In the 3rd quarter, CEO Andy Jassy told shareholders that the company was planning $ 75 billion in capital expenses by 2024 and even more in 2025.

For the 4th quarter, Amazon published earnings per year. Share of $ 1.86 on a turnover of 187.7 billion. Analysts expected EPS at $ 1.50 on a $ 187.3 billion turnover. The company saw EPS at $ 1.00 and a $ 169.9 billion turnover in the same period last year.

Amazon is struggling with the fall of China-based AI Startup Deepseek’s new AI models that sent Wall Street into a panic as investors questioned how a modest budget and lack of advanced chips could annihilate an AI platform to compete to compete with those from the most well-capitalized tech companies in the United States.

Like Microsoft, Amazon has already made Deepseeks AI model available through its AI service platform, allowing users to access and use the AI ​​software as they want.