Amazon stock falls after first quarter sales outlook disappoints
Published On Feb 6, 2025, 4:04 PM
Amazon reported its fourth-quarter results showing strong earnings, but the company's Q1 revenue outlook disappointed investors, leading to a decline in its stock price by over 3%. The anticipated revenue for Q1 is between $151 billion and $155 billion, falling short of analyst expectations of $158 billion. This weak outlook is largely attributed to unfavorable foreign exchange rates and the impact of the leap year. Additionally, Amazon plans to significantly increase capital expenditures, with a focus on artificial intelligence and data centers.
Stock Forecasts
AMZN
Negative
The disappointing Q1 guidance suggests continued challenges for Amazon, particularly in revenue generation. This could lead to further stock price declines, especially if the market reacts negatively in the short term. The company's increased capital spending, while potentially beneficial in the long term, may concern investors about profitability in the near term.
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