Amazon’s Aggressive Spending Overshadows Mixed Earnings Performance
Amazon shares tumbled more than 10% post-earnings as the tech giant unveiled a $200 billion investment plan that dwarfed analyst expectations of $146.6 billion. The market punished the stock despite fourth-quarter revenue of $213.39 billion edging past estimates of $211.33 billion.
Amazon Web Services outperformed with $35.58 billion in revenue versus $34.93 billion expected, while advertising revenue reached $21.32 billion against projections of $21.16 billion. These bright spots were eclipsed by concerns over operating expenses that included $1.1 billion in Italian tax settlements and $730 million in severance costs.
The company's North America segment showed strength with $11.5 billion in operating income, up from $9.3 billion year-over-year. AWS maintained momentum with $12.5 billion in operating income compared to $10.6 billion in the prior year period.
