Amazon Shares Fall on Q1 Revenue Outlook Shortfall

Amazon reported strong fourth-quarter earnings, with net sales of $187.8 billion exceeding Wall Street estimates of $187.3 billion, and earnings per share of $1.86 significantly above the expected $1.50. The company's retail segment performed well, driven by a 7% increase in online sales, while its cloud computing unit, AWS, reported a revenue of $28.79 billion, slightly below expectations. Despite these positive results, Amazon's stock fell 2% in after-hours trading due to a disappointing first-quarter revenue guidance of $151.0-$155.5 billion, which is below analyst expectations of $158.6 billion. The company cited an unfavorable currency impact and a prior year's sales boost from Leap Day as contributing factors to this outlook. CEO Andy Jassy highlighted the success of the holiday shopping season, noting the company's focus on profitable growth amid capital spending pressures in the tech sector. Analysts remain cautious about Amazon's ability to maintain high earnings growth in the face of challenges in the cloud market, where competitors are also reporting weaker results.