AMAZON REPORTS STRONG EARNINGS FOR Q4, BUT STOCKS DIP DUE TO OUTLOOK FOR THE FIRST QUARTER

Amazon reported better-than-expected revenue and profits for the holiday shopping period, but its stocks dipped in after-hours trading due to disappointing guidance for the current quarter.

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The Seattle-based e-commerce and technology company said its revenue for the OctoberDecember period totaled $187.8 billion, a 10% jump compared with the same period in 2023. Profits came out to $20 billion while earnings per share reached $1.86, higher than the $1.49 that analysts surveyed by FactSet had anticipated.

But the company said it expected revenue for the current quarter to be between $151 billion and 155.5 billion, lower than the $158.56 billion that analysts were expecting. The guidance anticipates “an unusually large, unfavorable impact” from foreign exchange rates, it said.

Amazon is the biggest online shopping destination in the U.S. and has long been a beneficiary of consumer spending during the holidays. As it has done in recent years, the company in October began offering promotions intended to lure early holiday shoppers. It advertised other discounts during the threemonth period, including on major sales days such as Black Friday and Cyber Monday.

Amazon reported it saw $75.5 billion in revenue for its online shopping business, up 7% from the same period in 2023.