Amazon posted lower profits but revenue came in above estimates but the company saw a slowdown in its cloud unit growth. Amazon also issued a first-quarter operating profit estimate that was slightly shy of Wall Street estimates.

Closing Bell

Amazon Posts Lower Profit But Revenue Tops Estimates

Earnings alert in from amazon breaking news. I want to bring in cheddar senior reporter Michele Castelli is the stock does drop in the after hours Michelle. So yes, let's start with the earnings per share which is that $1.39 now. This is not comparable to the estimate that the, that the refinitiv estimate from analysts which was at 18 cents. So it's hard to tell their how they actually did compared to what the street was expecting. However, revenue did come in higher than expected 100 and 49.2 billion. The street was expecting 100 45.4 billion. However, you are seeing that shares are dropping in after hours trading. I took a little quick look at the press release that amazon sent out and I think that's because of a couple interesting notes. First operating income actually decreased to $2.7 billion in the fourth quarter. We are seeing that the segment operating lost in north America was 0.2 billion. That's kind of similar to what they were seeing fourth quarter now last year in 2021. Now remember last report Q three of 2022 amazon offered one of their lowest guidances for revenue growth. They did beat it this time but it isn't really that revenue growth that companies were, We're hoping to expect at this time though they had a beat in revenue. It is, we are starting to see a slowdown for the company. We also want to keep a close look at that aws segment that, which is their cloud services that grew 20% year over year. Um that's a little bit weaker than I think the street was expecting as well. So I think that's why we're seeing shares drop slightly despite the revenue beat at this time. You know, it's interesting Michelle amazon of all the big technology companies laying off the most amount of workers, right, 18,000 and since Andy Jassy, the new ceo took over, it's definitely been a bumpy ride. Do you think Wall street's losing faith in Andy Jassy or is this just kind of a sign of the times and the overall economic environment? I think this is more just a sign of the times, you know, if you think about it while amazon does offer a lot of consumer goods and things that people will need to buy on a day to day basis, they're definitely being affected by budgets at this time. Excuse me. So you are looking at people really cutting back on budgets which also affects the staffing that amazon has, we know that amazon over staff during the pandemic the last time I was there during cyber monday, they did mention that they were still hiring in that warehouse House space, but you know, even as people, they're not gonna need to hire as many workers as they invest in things like robotics as well as if people aren't buying goods, they're just not gonna need that much staff to ship it out. So I think they're trying to just narrow down in order to keep redundancies from happening. Alright, Michele Castelli a with that break down, we got a busy hour ahead of us. Michelle, thank you for those Amazon results as the stock does follows. You see 3% in the after hours.