Amazon.com exceeded revenue expectations in the fourth quarter, thanks to its innovative generative AI features in its cloud services and e-commerce, resulting in strong growth during the critical holiday period. The company’s stock rose by eight percent after market close as it forecasts revenues in the current quarter ranging from $138 billion to $143.5 billion.
In the fourth quarter, Amazon Web Services (AWS), the world’s largest cloud service provider, achieved revenues of $24.2 billion, in line with analysts’ expectations. CEO of AWS, Andy Jassy, emphasized the long-term focus on customers and delivering new features, including generative AI. These new features are already reflecting in the company’s overall performance.
Although Amazon has many big-spending business clients, its position as the largest cloud service provider is threatened by Microsoft and Alphabet. To strengthen its cloud services and respond to Microsoft’s promise of a $10 billion investment in the OpenAI enterprise, Amazon is allocating up to $4 billion to Anthropic, a company specializing in chatbot creation.
Despite its strong performance, Amazon has recently laid off employees in various fields. It has stopped hiring tech firms after increased hiring during the pandemic. Nevertheless, the company continues to build fulfillment centers closer to customers, leading to faster and cheaper package delivery.
In its report for the fourth quarter, Amazon reports a 14 percent increase in revenues to $170 billion, surpassing analysts’ expectations. Adjusted earnings per share were $1, exceeding the average forecast by 20 cents.
Amazon hopes that its growing interest in generative AI will impact the company’s long-term forecasts.
Frequently Asked Questions based on the main topics and information presented in the article:
1. What were the reasons for the strong growth of Amazon.com’s stock in the fourth quarter?
2. What are the quarterly revenues of Amazon Web Services, and did they meet analysts’ expectations?
3. Who poses a threat to Amazon’s position as the largest cloud service provider?
4. How does Amazon plan to strengthen its cloud services and compete with its competitors?
5. Does Amazon lay off employees despite its good performance?
6. What were Amazon’s revenues in the fourth quarter, and did they exceed analysts’ expectations?
7. How does Amazon expect generative AI to impact the company’s long-term forecasts?
Definitions of key terms or jargon used in the article:
– Generative AI: Artificial intelligence capable of creating new, original content and solving problems based on available data.
– Cloud services: Web services delivered through remote servers instead of locally on user devices.
Suggested related links to the main domain (not subpages) in the format link name, if you are certain the URL is 100% accurate, do not add example.com links:
1. Amazon Web Services
2. OpenAI
Source: amazon.com – Fourth Quarter Results