Amazon, the e-commerce and technology giant, has reported its fourth-quarter earnings for the period ending December 31, 2024, surpassing expectations. According to the data, net sales increased by 10% to reach $187.8 billion, slightly above Wall Street's projected $187.3 billion, compared to $170 billion in Q4 of 2023.
In addition, operating income for the fourth quarter climbed to $21.2 billion, up from approximately $13.2 billion in Q4 of 2023. Net income also rose to $20 billion, or $1.86 per diluted share, exceeding the anticipated $1.49 per share. Notably, the company recorded a net income of $10.6 billion during the same period last year.
"The holiday shopping season was Amazon's most successful yet, and we are grateful to our customers, selling partners, and employees for their support in making this possible," said Andy Jassy, President and CEO of Amazon.
Regarding the cloud computing division, the AWS segment experienced significant year-over-year growth in Q4 2024, with sales increasing by 19% to $28.8 billion. AWS operating income also showed strong improvement, rising to $10.6 billion compared to $7.2 billion in Q4 of 2023.
During the holiday quarter, Amazon's advertising revenue grew by 18%, reaching $17.3 billion. Prime Video benefited from a long-term partnership with the NFL, with Black Friday becoming a new football day, further enhancing the platform's influence.
Looking back at the full year of 2024, Amazon reported steady growth in net sales, increasing by 11% to $638 billion. Full-year operating income surged to $68.6 billion, surpassing $36.9 billion in 2023. In terms of profitability, Amazon's net income nearly doubled in 2024, reaching $59.2 billion, or $5.53 per diluted share. AWS continued to perform exceptionally well throughout the year, with annual sales growing by 19% to $107.6 billion.
For the first quarter of 2025, the company anticipates sales growth of between 5% and 9% compared to the same period last year. This suggests that Amazon expects sales to range from $151 billion to $155.5 billion. Interestingly, since the first quarter this year does not include an extra day due to leap year, the company estimates this will result in a reduction of $1.5 billion in sales or earnings.
Meanwhile, the company notes that foreign exchange rates will negatively impact its earnings. They project a loss of about $2.1 billion due to unfavorable currency fluctuations. Amazon's financial results come as the company expands its financial services sector in India. This expansion includes acquiring Axio, a fintech company specializing in consumer loans, for $150 million.
