Amazon shares slide as poor income prospects, investors spent on

Investors Amazon Dr.

Amazon shares dropped up to 5% to expanded traders after the fourth profits ratio, eraseing the value of shares worth about $ 90 billion, and reduced about 4.2%.

Amazon’s leading financial officer Brian Olsavsky said he expected the level of capital expenditure for this year to be approximately the same as the fourth quarter of last year when the company spent $ 26.3 billion. Amazon has increased costs in particular to help develop artificial intelligence software.

The sales of the renowned company for the first quarter failed to meet the expectations of analysts, even if a negative impact of $ 2 billion from last year in Leap is included. The company said it predicts between $ 151 billion and $ 155 billion, compared to the average rating of $ 158 billion.

The Cloud unit, Amazon Web Services (AWS), reported an increase in 19% of revenue to $ 28.79 billion, highlighting estimates of $ 28.87 billion, according to data compiled by LSEG. Amazon joins Cloud Microsoft and Google’s smaller providers in reporting poor Cloud numbers.

Chief Executive Officer Andy Jassy said the unstable influx of computer chips had maintained an increase in AWS growth. “We can grow faster, if not for some of the capacity restrictions, and they come in the form of fried potatoes from our third -party partners that come a little slower than before,” he said in a phone call Conference.

The weakness of the clouds comes at a time when investors have increased more and more unbearable at the Multibillion Big Tech capital costs and are hungry for returning from large investment.

“After the very strong numbers of the third trimester, this quarter growth rates have been lost. This is what the market does not want to hear,” said Daniel Morgan, senior portfolio manager at Synovus Trust. He said this is especially true after the emergence of new competitors in artificial intelligence such as China’s Deepseek.

Like its rivals, Amazon is investing a lot in the development of artificial intelligence software. At her annual AWS conference in December she showed new software models that hopes to attract new business and customer customers. Later this month, it is set to release its long -awaited artificial intelligence generation service of artificial intelligence after delays for concerts for quality and speed, reports reports earlier this week.

Competitors Microsoft and Google Parent Alphabet both posted by slowing clowth in the fourth quarter of last year, sending lower shares. Companies, along with Meta platforms, said the costs of developing infrastructure for artificial intelligence software were behind the large estimated capital costs for 2025, a total of about $ 230 billion of bills.

Amazon’s retail business helped to compensate for Cloud’s weakness, with the company reporting on the increased sales of 7% in quarter to $ 75.56 billion. This is compared to estimates of $ 74.55 billion.

Amazon Amazon Operational Profit of $ 14 billion to $ 18 billion for the first quarter of 2025, losing an average analyst rating of $ 18.35 billion.

The company reports revenue of $ 187.8 billion in the fourth quarter, compared to the average analyst of $ 187.30 billion, according to data compiled by LSEG.

Advertising sales, a metric closely viewed, increased 18% to $ 17.3 billion. This is compared to the average estimate of $ 17.4 billion.

Net revenue nearly doubled to $ 20 billion from $ 10.6 billion a year ago. Seattle Retler reported income of $ 1.86 per share, compared to $ 1.49 per share expectations.