Amazon Beats Earnings Estimates, But Lower Guidance Sends Stock Down

Amazon Delivers Strong Earnings, But Guidance Disappoints Investors

Amazon (AMZN) posted stronger-than-expected earnings, but that wasn’t enough to keep its stock from slipping after the bell. The reason? Weaker-than-expected revenue guidance for the first quarter of 2024.

The e-commerce giant projects revenue between $151 billion and $155.5 billion, falling short of Wall Street expectations. Analysts had projected Amazon would hit $158.5 billion in Q1, sparking concerns about slowing growth.

Despite this setback, Amazon achieved a significant milestone—surpassing Walmart in total revenue for the first time. While Amazon has faced struggles with its brick-and-mortar ventures, its dominance in e-commerce and cloud computing continues to drive growth.

Investors remain cautious, balancing Amazon’s strong performance with concerns over future revenue shortfalls. As the company navigates shifting consumer trends and economic uncertainties, all eyes will be on its next earnings report.

(Source: Market Briefs)