Amazon’s big earnings beat and upbeat cloud talk send its stock soaring

by | Feb 1, 2024 | Stock Market

Amazon.com Inc. closed out last year with a big quarter of profit growth — and it signaled that a recent acceleration in its all-important cloud-computing business was expected to continue into 2024. The company on Thursday reported $13.2 billion in operating income for the fourth quarter, up from $2.7 billion a year before. Analysts had been modeling $10.4 billion.

Looking to the first quarter, Amazon
AMZN,
+2.63%
anticipates $8.0 billion to $12.0 billion in operating income, whereas the FactSet consensus was for $9.0 billion. The stock surged 7% in Thursday’s extended session. “We’ve challenged every closely held belief in our fulfillment network and re-evaluated every part of it and found several areas where we believe we can lower cost while also delivering faster for customers,” Chief Executive Andy Jassy said on the earnings call, noting that executives “have optimism there’s more upside for us.” Amazon’s fourth-quarter revenue rose to $170.0 billion from $149.2 billion, while the FactSet consensus had been for $166.0 billion. The company generated $105.5 in North America-segment revenue, up 13% from a year earlier. The Amazon Web Services cloud-computing business logged 13% growth, with revenue coming it at $24.2 billion. That matched the FactSet consensus view. Growth at AWS improved relative to the 12% r …

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[mwai_chat context=”Let’s have a discussion about this article:nnAmazon.com Inc. closed out last year with a big quarter of profit growth — and it signaled that a recent acceleration in its all-important cloud-computing business was expected to continue into 2024. The company on Thursday reported $13.2 billion in operating income for the fourth quarter, up from $2.7 billion a year before. Analysts had been modeling $10.4 billion.

Looking to the first quarter, Amazon
AMZN,
+2.63%
anticipates $8.0 billion to $12.0 billion in operating income, whereas the FactSet consensus was for $9.0 billion. The stock surged 7% in Thursday’s extended session. “We’ve challenged every closely held belief in our fulfillment network and re-evaluated every part of it and found several areas where we believe we can lower cost while also delivering faster for customers,” Chief Executive Andy Jassy said on the earnings call, noting that executives “have optimism there’s more upside for us.” Amazon’s fourth-quarter revenue rose to $170.0 billion from $149.2 billion, while the FactSet consensus had been for $166.0 billion. The company generated $105.5 in North America-segment revenue, up 13% from a year earlier. The Amazon Web Services cloud-computing business logged 13% growth, with revenue coming it at $24.2 billion. That matched the FactSet consensus view. Growth at AWS improved relative to the 12% r …nnDiscussion:nn” ai_name=”RocketNews AI: ” start_sentence=”Can I tell you more about this article?” text_input_placeholder=”Type ‘Yes'”]

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