Amazon stock drops after revenue beat, EPS miss
Amazon's (AMZN) Q4 2022 earnings report, released on Feb. 2, featured mixed results. The company clocked a revenue beat, but missed both EPS and Q1 guidance estimates.
The e-commerce giant's shares are down about 3% in after-hours trading.
What follows are some key numbers from the report, as compared to analysts' expectations compiled by Bloomberg.
Q4 Net Sales: $149.2 billion actual versus $145.8 billion expected
Q4 Online Stores Net Sales: $64.5 billion actual versus $65.03 billion expected
Q4 Physical Stores Net Sales: $4.95 billion actual versus $4.93 billion expected
Q4 Earnings Per Share (EPS): 3 cents actual versus 17 cents expected
Q4 Amazon Web Services (AWS) Net Sales: $21.3 billion actual versus $21.76 billion expected
Q4 Operating Income: $2.7 billion billion actual versus $2.51 billion expected
That miss on AWS sales is especially a blow for Amazon, as its cloud division has long thrived as a stalwart of the company's business. However, the cloud miss perhaps shouldn't be a surprise – last week, Microsoft (MSFT) warned in its earnings call that cloud growth deceleration was on the horizon.
Further, in 2022 overall, Amazon reported a net loss of $2.7 billion, tying off a tough year for Amazon. That loss is a key one – it's Amazon's first since 2014 and and the company's largest annual loss on-record, according to Morningstar.
Over the course of 2022, the company's shares declined about 47% amid the much-discussed digital advertising slowdown, high inflation, and rising interest rates. The company had grown rapidly in the early days of the pandemic, at a time when demand skyrocketed while consumers were at home amid shelter-in-place orders. However, the far-reaching economic uncertainty of 2022 sent Amazon – and its stock – careening back to Earth.
It appears that, for now, Amazon remains in a bind. The company recently announced some of Big Tech's most notable layoffs, looking to shed 18,000 employees in its largest layoff ever.
"In the short term, we face an uncertain economy, but we remain quite optimistic about the long-term opportunities for Amazon," CEO Andy Jassy said in a statement.
"When you also factor in our investments and innovation in several other broad customer experiences (e.g. streaming entertainment, customer-first healthcare, broadband satellite connectivity for more communities globally), there’s additional reason to feel optimistic about what the future holds," Jassy continued.
Allie Garfinkle is a Senior Tech Reporter at Yahoo Finance. Follow her on Twitter at @agarfinks and on LinkedIn.
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