Despite Amazon reporting its slowest revenue growth in four years, investors are still feeling positive about the trajectory for the tech giant after positive growth for their advertising and cloud services, CNBC reported Feb. 4.
Five things to know about Amazon's fourth-quarter earnings:
- Fourth-quarter sales missed the $137.6 billion in revenue projected by analysts and instead sat at $137.4 billion. The 9.4 percent growth rate as compared to last year marks the first single-digit growth percentage for the company since 2017.
- Revenue from Amazon's online retail offerings dropped by 1 percent, and the company reported worldwide operating losses of $1.63 billion. Experts blame inflation pressures on consumers, the omicron surge and supply chain disruptions for the loss in their retail space.
- Amazon Web Services showed a hike in revenue of almost 40 percent compared to 2021, beating analyst expectations by over $400 million to hit $17.8 billion.
- Its separate advertising service also overperformed, with advertising revenue hitting $9.7 billion, jumping 32 percent. Amazon's advertising revenue growth rate is almost the same as Google's for this quarter.
- Amazon stock increased as much as 15 percent Feb. 4.