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Amazon (NASDAQ: AMZN) reported impressive financial results for the fourth quarter of 2024, with net sales reaching $187.8 billion, a 10% year-over-year increase.
The company also recorded an operating income of $21.2 billion, a significant jump from $13.2 billion in Q4 2023.
Amazon’s Q4 Earnings: Key Highlights
Read the full earnings report on Amazon Investor Relations.
Amazon Stock Price Reaction
Despite strong earnings, Amazon’s stock price experienced a decline in after-hours trading. The primary reason was the company’s cautious guidance for Q1 2025, which forecasted revenue between $151 billion and $155.5 billion, below analysts’ expectations.
Market analysts attribute the decline to concerns over foreign exchange headwinds and tempered growth expectations. Read more about market reactions on Barron’s.
AI & Cloud Computing: The Future of Amazon
Amazon is aggressively investing in artificial intelligence (AI) and cloud computing. In 2024, the company spent $27.8 billion on infrastructure, with a significant portion dedicated to AI-driven innovations.
This investment signals Amazon’s strategy to maintain its competitive edge in cloud computing and AI, ensuring long-term revenue growth.
Future Predictions: Should You Invest in Amazon Stock?
Despite short-term volatility, many analysts remain optimistic about Amazon’s long-term growth. Key drivers include:
- Continued expansion of AWS and cloud services.
- Growing advertising revenue.
- AI-powered enhancements in logistics and retail.
Some predictions suggest a potential 23% increase in Amazon stock over the next year. For a deeper dive into stock forecasts, visit Investopedia.
