Amazon stock drops after revenue beat, EPS miss

Amazon (AMZN) reported its Q4 2022 earnings on Feb. 2, clocking a revenue beat and missing earnings per share, and Q1 guidance expectations.

Amazon shares are down about 3% in after-hours trading.

Here are the key numbers from Amazon’s 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

The AWS sales miss is a blow for Amazon, as the cloud giant has long been a stalwart of the company’s business. The numbers perhaps shouldn’t be a surprise – last week, Microsoft (MSFT) warned in its earnings call that cloud growth deceleration was on the horizon.

Additionally, in 2022 overall, Amazon reported a net loss of $2.7 billion.

This ties up a rough year for Amazon. The company’s shares declined about 47% over the course of 2022, as the company found itself in the throes of a digital advertising slowdown, high inflation, and rising interest rates. After the company grew rapidly to keep up with pandemic demand, the far-reaching economic uncertainty of the last year left Amazon in a bind.

It appears that, for now, they’re still more or less in that bind. Amazon recently announced some of Big Tech’s most notable layoffs, looking to shed 18,000 employees in the company’s 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 (eg streaming entertainment, customer-first healthcare, broadband satellite connectivity for more communities globally), there’s additional reason to feel optimistic about what the future holds,” he continued .

Allie Garfinkle is a Senior Tech Reporter at Yahoo Finance. Follow her on Twitter at @agarfinks and on LinkedIn.

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