Amazon Q4 Revenue Tops Estimates, EPS Misses; $200B Capex Ahead

Amazon reported mixed fourth-quarter results on Thursday, with revenue surpassing Wall Street expectations but earnings per share falling slightly short, while the company outlined plans to invest $200 billion in capital expenditures next year to fuel artificial intelligence and other technologies. The e-commerce and cloud computing giant's shares dropped more than 9 percent in after-hours trading following the announcement.

For the October-to-December period, Amazon posted net sales of $213.4 billion, a 14 percent increase from the previous year that exceeded analysts' average forecast of about $211.4 billion. Earnings per share came in at $1.95 on a diluted basis, missing the consensus estimate of $1.96 to $1.97 by a narrow margin. Operating income reached $25 billion, up from $21.2 billion a year earlier, reflecting improved profitability despite ongoing investments.

The standout performer was Amazon Web Services, the company's cloud computing division, which generated $35.6 billion in revenue, a 24 percent year-over-year rise that topped expectations of around $34.9 billion. Officials attributed the growth to surging demand for AI infrastructure, with Amazon installing...