Despite a strong Q4, Amazon’s stock fell 4.25% in after-hours trading as the company issued weaker-than-expected guidance for the first quarter of 2025. Amazon expects Q1 revenue between $151 billion and $155.5 billion, falling short of analysts’ consensus estimate of $158.3 billion.
The company also projected operating income in the range of $14 billion to $18 billion, compared with $15.3 billion a year ago. Management cited foreign exchange headwinds and the absence of an extra Leap Year day as factors likely to impact growth in the current quarter.
Key Growth Drivers and Challenges
Amazon’s retail segment continued to thrive, with record-breaking Black Friday and Cyber Monday sales. Prime delivery speeds reached new highs, with a 65% increase in same-day or overnight deliveries for U.S. members. The company…
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