Amazon's Q4 Earnings Beat Expectations, but Guidance Weighs on Stock

Amazon.com (AMZN) reported better-than-expected fourth-quarter earnings on Thursday, but its shares dipped in after-hours trading due to disappointing revenue guidance for the current quarter. The e-commerce and cloud services giant saw net sales rise 10% year-over-year to $187.8 billion, surpassing the analyst consensus from Visible Alpha. Earnings came in at $20 billion, or $1.86 per share, up from $10.62 billion, or $1 per share, a year earlier, also above expectations. Amazon Web Services (AWS) revenue increased 19% to $28.79 billion, slightly shy of projections.

However, Amazon forecast first-quarter revenue of between $151 billion and $155.5 billion, below the analyst consensus of $158.58 billion. The company said the forecast reflects "an unusually large, unfavorable impact" from foreign exchange rates, to the tune of $2.1 billion. Shares of Amazon were little changed in extended trading following the release.

Amazon's strong Q4 earnings report highlights the company's resilience and growth potential, particularly in its AWS segment. However, the soft revenue guidance for the current quarter may weigh on the stock in the near term. Investors should closely monitor Amazon's progress and assess the impact of foreign exchange rates on its financial performance.