TradingKey - On Thursday, February 7, tech giant Amazon (AMZN.US) released a mixed Q4 2024 earnings report after the market close. While revenue and profits exceeded expectations, disappointing guidance and soaring capital expenditures (CapEx) sent its stock tumbling over 7% in after-hours trading.
Amazon’s report featured several highlights: cost-cutting measures paid off, net profit nearly doubled, its cloud computing division maintained a 19% growth rate for the third consecutive quarter, and e-commerce performed strongly during the holiday season.
However, investors were particularly concerned about the AI growth outlook and rising expenditures. On one hand, Amazon plans to invest heavily in AI infrastructure this year; on the other, it warned of a "volatile" year ahead and provided revenue guidance that fell short of expectations.
With the rise of Chinese AI model DeepSeek driving down the cost of AI training, Amazon’s continued heavy spending on AI has raised investor concerns.
Following the...