The online trade giant Amazon exceeded the expectations of the analysts in the fourth quarter of 2024 thanks to a thriving Christmas company. CEO Andy Jassy spoke about the “most successful Christmas shopping season ever”. But the joy was clouded by a weakening vision and the decreasing growth of the cloud division. Investors responded to the Wall Street
The image of the first quarter disappointed too. Amazon shares then fell by more than four percent in the aftertacial activities of Wall Street.
Rails a billion higher than expected
According to the information, the group course rose by ten percent to $ 187.8 billion (181.27 billion euros). The income in online trade with $ 75.56 billion was around one billion dollars higher than predicted. The Cloud -daughter company Amazon Web Services (AWS) grew by 19 percent to $ 28.79 billion, but analysts had hoped for almost $ 100 million more.
“The market does not want to hear that,” said portfolio manager Daniel Morgan of the Synovus Asset Manager. Especially not in the light of new AI competitors such as Deepseek.
Deepseek ask old certainties
According to the Chinese start-up of the same name, the development of this artificial intelligence (AI) has only cost a fraction of the common amounts. Moreover, the program is with similar performance with less arithmetic power than Chatt, Gemini & Co. This feeds on investors or the billions in investments are fruit in new AI data centers.
The growth of Microsoft’s cloud distributions and Google recently disappointed. Nevertheless, the large American technology groups unanimously adhere to their expansion plans. Microsoft defended this with the argument that the rise of cheap AI accelerates the spread of this technology and therefore leads to an increased need for arithmetic capacities.
Large investments in AI
Amazon is planning to invest around $ 100 billion in infrastructure this year – usually until the expansion of data centers for artificial intelligence. The question from IT customers for resources for this is so great that the Cloud Division AWS meets with capacity bottlenecks, Amazon -Baas Andy Jassy said when presenting the current quarterly figures.
In the past quarter, Amazon has already invested $ 26.3 billion (EUR 25.3 billion) in the expansion of his infrastructure. Jassy promised that the bottlenecks should leave with extra chiples and a better energy supply in the second half of the year. The software giant Microsoft, who works together with the Chatgpt -developer OpenAI, also complained last week that he did not have enough capacity for the AI needs of his customers.
Amazon promised the company’s turnover between $ 151 and $ 155.5 billion for the quarter. Analysts had hoped for more than $ 158 billion. The group pointed out that the expected predictions were included in his predictions in the volume of a good two billion. In addition, there was another working day during the comparison period because of the jump year, which was reflected in an extra turnover of $ 1.5 billion at the time.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
