Amazon just reported its least profitable Q4 in years
Amazon.com Inc just reported its least profitable fourth quarter since 2014. Shares are trading down in extended hours.
The stock is taking a hit also on weak guidance. In its current financial quarter, Amazon expects to bring in $121 billion to $126 billion of revenue on $4.0 billion in operating profit at the top end of the range.
In comparison, experts had called for $125.09 billion and $4.04 billion, respectively.
Even more disappointing was the slowdown in cloud computing. Amazon Web Services this quarter generated $21.38 billion in revenue on $5.21 billion of operating income – both well below the estimates.
Year-over-year, the business grew 20% in the holiday quarter versus 27.5% in Q3.
According to Amazon, it ended the year with a net loss of $2.7 billion, much of which was related to an enormous hit to its stake in Rivian Automotive Inc.
Earned $278 million versus a much higher $14.3 billion a year ago
Per-share earnings also narrowed sharply from $1.39 to 3 cents only
Revenue increased 9.0% on a year-over-year basis to $149.2 billion
FactSet consensus was 17 cents of EPS on $145.71 billion revenue
Ad revenue of $11.56 billion (up 23%) was also better than expected
This is a developing story. Please check back for updates
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