Amazon Beats 2022 Q4 Analysts Expectations on Revenue, AMZN Stock Volatility Spikes

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Amazon anticipates net sales to come in between $121.0 billion and $126.0 billion, which will represent a growth of between 4% and 8% compared with the first quarter of 2022.

Amazon.com Inc (NASDAQ: AMZN) shares closed Thursday trading at $112.91, up 7.38 percent from the day’s opening value. However, AMZN shares dropped approximately 5.07 percent to trade around $107.18 during the extended trading period. The increased volatility is directly attributed to the financial results of Amazon for Q4 which ended on December 31, 2022. Notably, the American multinational technology company focused on e-commerce among other businesses beat fourth-quarter revenue expectations but provided light guidance.

Amazon Q4 2022 Financial Statements

Amazon posted revenue of about $149.2 billion for Q4 2022  versus the $145.42 billion expected by analysts, according to Refinitiv estimates. During the last three months of 2022, Amazon posted 3 cents in earnings per share down from $1.39 EPS YoY.

The net sales for the fourth quarter came in at $149.2 billion, up approximately 9 percent year-over-year. Reportedly, the North American segment sales increased by 13 percent year-over-year to $93.4 billion, whilst the international segment sales decreased by 8 percent year-over-year to $34.5 billion.

Nonetheless, both North American and the international segment posted operating losses of about $0.2 billion and $2.2 billion respectively.

As a result, the company reported a net loss of about $2.3 billion compared to a net gain of about $11.8 billion a year ago.

“Our relentless focus on providing the broadest selection, exceptional value, and fast delivery drove customer demand in our Stores business during the fourth quarter that exceeded our expectations…,” Andy Jassy, Amazon CEO, noted.

Forward, the company anticipates net sales to come in between $121.0 billion and $126.0 billion, which will represent a growth of between 4% and 8% compared with the first quarter of 2022. However, according to a survey conducted by Refinitiv, analysts expected the company to report a net sale of about $125.1 billion.

“When you also factor in our investments and innovation in several other broad customer experiences (e.g. streaming entertainment, customer-first healthcare, broadband satellite connectivity for more communities globally), there’s an additional reason to feel optimistic about what the future holds,” Jassy added.

Side Notes

The $1.07 trillion valued company delivered the 10 millionth package using electric delivery vehicles from Rivian during the fourth quarter. During the fourth quarter, Amazon announced several products including Amazon Clinic, AWS Graviton3E chips, Amazon Security Lake, Amazon DataZone, AWS Supply Chain, AWS SimSpace Weaver, AWS Clean Rooms, Inspire, and Sparrow among others.

Worth noting that HBO is back to Prime Video Channels for the US customer. The company reached an agreement with Warner Bros. Discovery. For $15.99 per month to allow customers who subscribe to HBO Max have access to approximately 15,000 hours of curated premium content.

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Steve Muchoki

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