Amazon reported strong consumer sales and growth in its cloud computing business in the latest quarter. Sales for the quarter reached $187.8 billion, up 10 percent from the previous year, with profits increasing to $20 billion. However, the company warned investors of slower growth in the coming quarter, expecting sales to grow between 5 percent and 9 percent.
Cloud computing, a major profit engine for Amazon, grew 19 percent to $28.8 billion in the quarter. Amazon’s investments in artificial intelligence seemed to be paying off, with the company quickly making a Chinese A.I. system available to customers. CEO Andy Jassy highlighted how A.I. could lead to increased customer spending as it becomes more affordable to deploy.
Despite ongoing capital investments of $26 billion in the quarter, totaling over $77 billion for the year, Amazon ended the year with over $82 billion in cash. The company’s share price saw a 4 percent decrease in after-hours trading following the report.
Amazon’s North American retail business also saw growth, with a 10 percent increase in sales during the holiday shopping period. The company’s focus on faster shipping and efficient logistics has led to increased customer buying, with over nine billion items delivered the same or next day in 2024.
Overall, Amazon continues to invest in expanding its data center capacity and capital expenditures, expecting to continue at a similar rate throughout 2025. Despite the potential for slower growth in the near future, Amazon’s strong performance and strategic investments are positioning the company for continued success in the future.
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