E-commerce Amazon announced the expected strong quarterly financial results for the evening. Especially increased profitability has given investors a joy. However, disappointment in the first quarter was a sentiment.
Amazon.com Amazon.com Q4 Business Listings (Predictions):
Revenues: $ 72.4 billion (71.9 billion)
Earnings per share: $ 6.04 (5.68)
AWS (cloud): $ 7.43 billion (7.30)
The fourth quarter is traditionally the strongest market throughout the year thanks to Christmas holidays.
The increase in sales was 20 percent and two percentage points stronger than expected. With annual revenues exceeding $ 200 billion, analysts are speculating for a slowdown in growth for some time. However, until the end, it was not clear how strong it might be.
Another focus of the e-commerce giant is the AWS cloud. Cloud services and store stores are growing fast and have historically contributed 50 percent to operating profits in the past. With an operating profit of $ 2.18 billion over the past three months, AWS has not only consolidated its reputation as a cash cow, but has also demanded leadership in the cloud market against rivals such as Microsoft and Google. Analysts estimate the daughter's value in the case of splitting to $ 350 billion.
Stocks on the stock market originally rose to $ 1,734 on the stock market. Currently, the name is listed for $ 1,685.
As a mood killer, the prospects for the first quarter of 2019 appeared in the evening.
With Amazon's e-commerce volume that slows down and regulatory barriers in India, Amazon expects to increase revenues to $ 56-60 billion. Analysts calculated an average of $ 60.8 billion.
The shareholder confirms his positive view of the stock due to the strength of the numbers and maintains a recommendation for the purchase despite the expected slight decline in growth during the first quarter.