Amazon General Director Andy Jassy speaks at the Bloomberg Technology Summit in San Francisco on June 8, 2022.
David Paul Morris | Bloomberg | Getty Images
Amazon It is scheduled to report the fourth quarter revenue on Thursday after the market is closed.
Here’s what analysts expect:
- Profits: 1.49 dollars for expected action, according to LSEG
- Income: 187.3 billion dollars are expected, according to LSEG
Wall Street is also watching some other numbers in the report:
- Amazon Internet Services: $ 28.8 billion, according to Streetaccount
- Advertising: $ 17.4 billion, according to Streetaccount
Analysts are designing an increase in revenue by about 10% during the quarter, which includes results from the holiday shopping season. Internet spending increased almost 9% to $ 241.1 billion in November and December, according to data from Adobe Analytics, which tracks sales on retail websites. This was slightly higher than the analyst forecast for sale of $ 240.8 billion.
Operating revenue during the fourth quarter is expected to increase 44% year by year about $ 19 billion, according to Factset estimates.
The company’s latest line has benefited from CEO Andy Jassy’s cost reduction campaign, which has continued since the end of 2022. The company has fired more than 27,000 employees in 2022 and 2023, and had smaller rounds of cuts of jobs in 2024 that have spread within this year. Amazon has also continued to give up some of his most experimental and unprofitable initiatives.
Amazon rounded up a busy profit period for higher technology companies. Google parent Alphabet On Tuesday he posted the disappointing income of the fourth quarter. Apple, Meta AND Microsoft The results reported last week.
Wall Street will require any comment from Amazon about the influence of recently announced tariffs of President Donald Trump in his business. Tariffs in Canada and Mexico are now waiting for a month, while import taxes remain in the country for China.
The company has long connected Chinese manufacturers with US buyers through its third -party market. According to some estimates, China -based traders exceed American sellers on the platform, according to data from the Pulse Marketplace.
The Amazon’s first retail business has the highest exposure to Trump’s tariffs for Chinese imports among the e -commerce companies, Analysts in Morgan Stanley writes on Monday. Analysts estimate that 25% of products sold by the Amazon’s first retail business come directly from China.
Over the years, Amazon has been removed from the sales of the first parties to the sellers of third parties, which now make up 60% of the products sold on the site.
During the fourth quarter, Amazon began her competition in Temu and Shein, called Haul, which offers low -cost clothing, jewelry, electronics and other items. Trump’s tariffs also aimed at excluding “de minimis” trade that has allowed direct services from the KIA as Amazon Haul to bypass tasks and taxes in packages worth less than $ 800. Amazon’s charge prices can increase as a result of Trump by closing the derals void.
Company’s investments in artificial intelligence are also likely to be a concentration area.
Amazon planned to spend about $ 75 billion for Capex in 2024, Jassy said last quarter, adding that he suspected the company would spend more in 2025. Expenditure jumping is being driven mainly by investments, Jassy said.
A model he created by the Chinese beginning Deepseek has captured titles and noisy markets in recent weeks. Deepseek claims it took only two months and less than $ 6 million to develop its R1 model, which says O1 O1 rivals. The announcement captured Wall Street and Silicon Valley by surprise, challenging the assumption that technology companies have to spend a lot on chips and data centers in order to build it.
Amazon has been competing to release new products and features as he seems to continue with her competition. The company in December launched a new group of AI models, called Nova. The company also offers Bedrock, which allows users to enter the models it from Amazon and others, and a chatbot for purchases called Rufus.
The company is expected to release an updated version of its assistant Alexa Digital with its features. She first rewritten Alexa in 2023, although participation is reported to have slowed down by technical challenges, according to Bloomberg. In October, Jassy said the new Alexa can start “in the near future”.
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