Key Points
-
Amazon reported its fourth-quarter results with net sales of $213.4 billion, a 14% year-over-year increase.
-
Amazon Web Services (AWS) revenue reached $35.6 billion, growing 24% year-over-year—the fastest growth in over three years.
-
The company plans to invest $200 billion by 2026 to address supply constraints, significantly higher than Wall Street’s expectation of $147 billion.
Amazon (NASDAQ: AMZN) announced its fourth-quarter financial results on Wednesday, revealing net sales of $213.4 billion, which surpassed analysts’ expectations of $211.6 billion. However, diluted earnings per share (EPS) fell slightly short at $1.95 compared to the anticipated $1.96.
The company’s cloud segment, Amazon Web Services (AWS), reported $35.6 billion in revenue, marking a 24% year-over-year increase. This performance represents the fastest growth rate for AWS in over three years, driven by heightened demand for AI and cloud services. CEO Andy Jassy highlighted that the company is facing supply constraints due to surging customer demand.
To alleviate these issues, Amazon plans to allocate $200 billion in capital expenditures by 2026, mainly directed towards AWS, reflecting a 53% increase from the previous year’s budget. In contrast, Alphabet’s Google Cloud grew 48% year-over-year in the same quarter, indicating increasing competition in the cloud market.
