Amazon.com, Inc. (NASDAQ: AMZN) has reported a decline in its stock following the announcement of its fourth-quarter earnings and a sales outlook that fell short of analysts’ expectations. The e-commerce giant revealed that its net sales for the fourth quarter of 2024 reached $149.2 billion, showcasing a growth of 9% compared to the previous year, yet analysts had anticipated a more robust performance. The company’s projections for the first quarter of 2025 raised concerns, estimating sales between $121 billion and $126 billion. This forecast suggests a growth rate that could slow down to between 4% and 8% year-over-year. Brian Olsavsky, Amazon’s Chief Financial Officer, expressed during the earnings call, “We are seeing mixed signals in consumer spending, and as we move into 2025, our outlook reflects this cautious stance.” On the other hand, Amazon’s AWS (Amazon Web Services) segment remains a stronghold, continuing to expand, with revenues for this section reaching $21.4 billion, a year-over-year increase of 14%. Despite this growth in AWS, investors reacted sharply to the more subdued overall guidance, resulting in a decline of AMZN share prices by approximately 5% in after-hours trading. This downturn in the stock price reflects broader concerns about consumer confidence and spending behavior amid changing economic conditions. The company’s focus on efficiency and cost management may shape its strategies as it navigates these unpredictable market dynamics. Analysts will continue to monitor Amazon’s performance as it contends with competition and strives to achieve its projected growth targets.
Amazon’s Stock Declines Following Disappointing Fourth Quarter Sales Outlook
