The slowdown of artificial intelligence revenues raises the concern of Amazon investors
“Amazon” profits in the fourth quarter
Amazon has announced the profits of the fourth quarter that exceeded the estimates of analysts, but provided weaker guidelines of the expected impact of the foreign exchange rate and the high spending on artificial intelligence.
The shares of the American e -commerce giant decreased by more than 4% in extended transactions after its profit report.
Also read: “Amazon” spends $ 11 billion to enhance its strength in artificial intelligence
With the closure of the market trading, the stock increased by 9% this year 2025 so far after an increase of 44% in 2024.
Fears of the slowdown of artificial intelligence
Amazon’s guidelines reflect what Alphabet, Microsoft and Mita companies do, indicating that the feverish artificial intelligence industry may face slowdown.
Giant technology companies in the United States face obstacles to growth due to restrictions and ability to continue this, as increasing demands require the continued huge investment in data centers.
Meanwhile, the recently emerging Chinese company “Deep CII” has developed the R1 (R1) (R1) at a lower cost, which raised concerns about the exaggeration of evaluation between major technology companies in the United States for artificial intelligence costs.
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Amazon directives are disappointing
Amazon sees revenues of $ 151 billion (145.2 billion euros) and 155.5 billion dollars (149.5 billion euros), which is much lower than 158.5 billion dollars (152.4 billion euros).
In the statement, the company cited the guidelines “that expects an unfavorable effect of about 2.1 billion dollars (2.0 billion euros) of foreign exchange rates.”
The company expects operating income between $ 14 billion (13.5 billion euros) and 18 billion dollars (17.3 billion euros), while analysts expected an average of $ 18.2 billion (17.5 billion euros).
Amazon sales declined because of the dollar
The US dollar index has risen to its highest level since November 2022 in January, supported by Donald Trump, and the transformation by the Federal Reserve, and for this, may have been negatively affected by retail sales of Amazon when converting external income to the dollar.
In addition, Amazon has invested extensively in the expansion of data centers, as investment spending amounted to 27.8 billion dollars (26.72 billion euros) in the quarter ending in December 2024, an increase of about 90% compared to the same period in 2023.
Amazon announced the achievement of revenues of $ 187.8 billion (180.53 billion euros), an increase of 10% over the previous year, exceeding the expectations of 187.3 billion dollars (180.05 billion euros). With the exception of the unfavorable effect of foreign exchange rates, its revenues increased by 11% on an annual basis.
Reducing costs and employees in “Amazon”
The company’s profits have increased in the wake of large -scale measures to reduce costs, especially by reducing the number of employees over the past two years, with a net income increased by 189% on an annual basis to $ 20 billion (19.23 billion euros).
Amazon Web services have maintained the company’s main sector, a annual growth rate of 19% for the third quarter in a row, which is in line with analysts’ expectations.
The company highlighted the Amazon Web Service innovations as a major focus axis, including the interior artificial intelligence chip in Amazon.
Amazon .. the largest cloud computing company
Amazon Web Service remains the largest cloud computing company in the world, followed by Microsoft Azore and Google Cloud.
However, its two main rivals grew at a rate of about 30% faster during the same quarter.
Growth beats Amazon
The online retail and advertising services recorded 8% and 18% on an annual basis, to reach 75.6 billion dollars (72.67 billion euros) and $ 17.3 billion (16.63 billion euros), respectively.
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