Shares of Amazon experienced a 4% decline during extended trading, wiping out an earlier 7% increase, following the company’s fourth-quarter earnings release on Thursday. Despite the drop, the e-commerce giant’s results exceeded expectations as its revenue reached $149.2 billion, surpassing the estimated $145.2 billion from Refinitiv analysts. Amazon attributed its net sales growth to a “record-breaking holiday season,” highlighted by over $1 billion generated in the US during the five-day period from Thanksgiving to Cyber Monday.
The company has forecasted first-quarter 2023 revenue to be between $121 billion and $126 billion, slightly lower than Refinitiv’s estimated net sales of $125.11 billion. However, Amazon also announced plans to cut more than 18,000 jobs in the year, citing economic uncertainty. CEO Andy Jassy expressed optimism in the long-term prospects of Amazon, despite the short-term challenges, and noted the progress the company has made in reducing costs.
In terms of Amazon Web Services, the division fell short of fourth-quarter estimates with sales of $21.4 billion, compared to the expected $22 billion. Despite this, Jassy remains confident in Amazon’s overall performance and prospects for the future.
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