Key Points
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Amazon’s cloud computing revenue increased by 24% year-over-year in Q4 to $35.6 billion, up from 20% growth in Q3.
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Advertising services revenue hit $21.3 billion in Q4, showing a 23% increase year-over-year.
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Amazon anticipates $200 billion in capital expenditures by 2026, with free cash flow falling from $38.2 billion to $11.2 billion over the past year.
Amazon (NASDAQ: AMZN) reported its fourth-quarter earnings recently, revealing strong growth in its cloud and advertising segments despite a decline in free cash flow due to heightened capital expenditures. The company’s AWS segment generated $35.6 billion in revenue, accounting for $12.5 billion in operating income, which comprised half of Amazon’s total operating income of $25 billion for the period.
However, the anticipated $200 billion in capital expenditures by 2026 has led to investor caution, resulting in a 13% decline in the company’s share price over the past month. Amazon’s overall net sales rose to $213.4 billion, reflecting a 14% increase year-over-year, while its e-commerce and advertising divisions continue to show resilient growth.
