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Amazon share price slides, earnings disappointed in Q4


Discounts drive sales, but the net profit is disappointing: The retail giant Amazon cannot meet investors' expectations with its quarterly figures. The outlook is also muted. The stock gives way.

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Amazon CEO Andy Jassy: Write-downs on electric car maker Rivian depress net profit

Photo: Isaac Brekken/AP

The world's largest online retailer Amazon made more sales than expected in the Christmas quarter despite fears of inflation and recession.

In the three months to the end of December, revenue increased by nine percent year-on-year to $149.2 billion (136.7 billion euros), as the group announced on Thursday after the US stock market closed.

Experts had expected significantly lower growth.

However, higher costs caused operating profit to shrink from $3.5 billion to $2.7 billion.

The net result was even only 278 million dollars, which was mainly due to a value correction of the stake in the ailing electric car manufacturer Rivian.

The figures were not well received by investors: the share fell by six percent at times in the after-hours trading.


Amazon's outlook for the current quarter disappointed with a sales forecast of $121 billion to $126 billion and an expected operating profit of between zero and four billion.

In addition, the important cloud business did not grow as strongly as hoped.

The company's shares fell almost 6 percent in after-hours trade in the United States.

Previously, they had risen by around 5 percent in anticipation of positive quarterly figures on Thursday in the course of trading.

Unlike Meta, which ignited a 25 percent rally with its quarterly results, Amazon's numbers fell short of expectations.


Source: spiegel

All news articles on 2023-02-02

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