Amazon has posted better-than-expected fourth-quarter figures, driven by new generative AI features in its cloud computing unit and strong demand in its core e-commerce business.
The company saw revenues surge 14% to $170.0bn over the three months 31 December, with sales in its online stores up 8% to $70.5bn. Amazon noted that it held record-breaking Black Friday and Cyber Monday sales events during the period, with customers also purchasing more items over the festive season than the previous year.
Net income hit $10.6bn, up from $278m the year before, after the company benefitted from cost cuts and the restructuring of some of its fulfilment operations. Operating income increased from $2.7bn to $13.2bn.
Andy Jassy, the group’s Chief Executive, said: “This Q4 was a record-breaking holiday shopping season and closed out a robust 2023 for Amazon. While we made meaningful revenue, operating income and free cash flow progress, what we’re most pleased with is the continued invention and customer experience improvements across our businesses.”
For its current first quarter of 2024, Amazon is forecasting sales growth of up to 13%, with operating profits expected to rise from $4.8bn to between $8bn and $12bn.
Amazon shares, which have risen by about 50% in the past 12 months, rose as much as 9% after the trading report was issued late Thursday.
Further analysis by Martin Heubel on LinkedIn
