Amazon (AMZN) came out with quarterly earnings of $1.95 per share, missing the Zacks Consensus Estimate of $1.98 per share. This compares to earnings of $1.86 per share a year ago.
Amazon.com reported solid Q4 revenue growth, reinforcing its position as a leading e-commerce and cloud services provider. My previous caution on AMZN's valuation persists, as current fundamentals do not yet justify a bullish stance. AMZN will spend massively on a wide range of investments next year, free cash flow will likely take a hit.
E-commerce giant Amazon released its fourth quarter earnings results after Thursday's closing bell, just missing Wall Street's forecast for adjusted earnings ($1.95 per share vs. estimates of $1.96) while topping net sales expectations ($213.39 billion vs.
Amazon.com, Inc. is upgraded to a strong buy after a ~9% post-Q4 drop, despite solid quarterly results and robust long-term growth prospects. AMZN's AWS growth lagged peers but still exceeded estimates; heavy CapEx signals management's conviction in future opportunities, especially in AI and custom chips. Margin expansion and a favorable revenue mix—advertising, AWS, and subscriptions—support a compelling long-term investment case.
Sometimes, it can seem like the AI industry is racing to see who can spend the most money on data centers. Whoever builds the most data centers will have the most compute, the thinking goes, and thus be able to build the best AI products, which will guarantee victory in the years to come.
Amazon shares fell 9% after hours Thursday as the company's plan to spend $200 billion on capex in 2026—far above Wall Street's $146B estimate—sparked fears over cash flow and profitability.
The company reported a strong holiday quarter on Thursday. But its big spending on things like artificial intelligence and satellites is starting to make investors nervous.
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Amazon (AMZN) set the bar even higher for mega cap CapEx with projections of $200 billion for 2026. Shares of the Mag 7 giant initially sold off following the announcement and earnings miss.
Amazon will host its Q4 earnings call at 5 p.m. EST, with an option to listen in on its investor relations website.
Amazon.com reported that sales rose to $213.4 billion in the fourth quarter, following a solid holiday shopping season and strong growth in the company's data-center business.
Prediction markets give Amazon 97% odds of beating earnings tonight. That's higher than any other company reporting after the bell.