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Amazon (AMZN) Earnings Q4 2022

Amazon CEO Andy Jassy speaks at the ribbon-cutting ceremony ahead of tomorrow’s opening night of the NHL’s newest hockey franchise, the Seattle Kraken, at the Climate Pledge Arena in Seattle on October 22, 2021. To do.

Bruce Bennett | Getty Images Sports | Getty Images

Amazon Earnings reported after the bell. This is the result.

  • Earnings: $1.39 per share
  • Earnings: $149.2 billion vs. $145.42 billion, according to Refinitiv estimates

It is not immediately clear whether reported earnings will match Refinitiv analyst estimates of 18 cents per share. Wall Street is also eyeing a few other numbers in the report.

  • Amazon Web Services: $21.87 billion, according to StreetAccount
  • advertisement: $11.38 billion, according to StreetAccount

Amazon likely posted its worst revenue growth for a public company in a quarter century, and is set to see another quarter-digit revenue increase as it copes with lower consumer demand from inflation and a slowdown in its cloud business. It is

company warned The company’s latest earnings report said fourth-quarter earnings were up only 2% to 8% over the same period last year.

amazon stocks lost half its value In 2022, rising inflation-related costs, war in Ukraine and supply chain constraints forced the company to recalibrate after pandemic-fueled growth. Meanwhile, consumers continue to return to in-person shopping and refrain from discretionary spending, adding to Amazon’s pain.

Even the holiday season seemed pretty lackluster. Amazon’s online store segment revenue is expected to decline by 1.4% year-over-year, according to FactSet estimates.

“While we expected a rise in consumer spending in late November during Cyber ​​Five (the Thanksgiving holiday shopping weekend was the largest in Amazon’s history), this uptick is likely to be short-lived, with December retail sales decreased by 1.1%. [month over month], the steepest decline in 2022,” analysts at Canaccord Genuity wrote in a note to clients earlier this week. The company maintains a buy rating on Amazon stock.

CEO Andy Jassy’s cost-cutting efforts will be a major focus. Amazon in January Said Company cuts 18,000 jobs from its workforce after laying off many last NovemberThe company has also frozen corporate hiring, cut some projects and suspended warehouse expansions to contain rising costs.

Amazon Web Services is expected to see slower growth during the fourth quarter as companies cut back on spending to cut costs.cloud computing rival microsoft last week report Slow scaling of Azure units.

AWS CEO Adam Selipsky Said “Some customers are tightening their belts right now,” he said in an interview late last year at the company’s annual Reinvent customer conference.

One bright spot could be Amazon’s advertising business, which is expected to post solid revenue growth during the fourth quarter.online advertising been under pressure Inflation has caused some brands to readjust their budgets.

However, Amazon’s advertising business is poised to grow “in the mid-teens range” by 2023. This is because sellers and vendors continue to buy targeted product advertising, even in a challenging macro environment. Amazon stock.

apple When alphabet It will also report results after Thursday’s bell, closing out the earnings season among the most valuable tech companies.

look: RBC’s Brad Erickson analyzes Big Tech

https://www.cnbc.com/2023/02/02/amazon-amzn-earnings-q4-2022.html Amazon (AMZN) Earnings Q4 2022

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