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Amazon shares fell more than 4% in extended trading on Thursday after the company reported weaker-than-expected
Amazon posted a significant profit outperformance for the fourth quarter, buoyed by gains from its investment in electric vehicle company Rivian.
The company also revealed revenues from its fast-growing advertising business for the first time.
On Thursday, Amazon said revenue jumped 9% last quarter, and the company reported a gain of about $12 billion from its investment in electric car company Rivian.
Earnings per share amounted to $5.80 versus $3.57 expected, while revenue reached $137.4 billion versus $137.6 billion expected.
AWS revenue came in at $17.8 billion, versus $17.37 billion expected.
Amazon was guided by first-quarter revenue of between $112 billion and $117 billion, below the average estimate of $120 billion.
Operating profit for the fourth quarter will range from $3 billion to $6 billion.
Fourth-quarter sales grew 9.4% to $137.4 billion.
This is Amazon’s first period of growth since 2017.
Even with the weaker-than-expected sales number and disappointing guidance, Amazon gave investors enough confidence that growth would recover.
