Amazon's Earnings and Cloud Surge Amidst Spending Plans

Amazon's fourth-quarter earnings missed estimates despite a 14% revenue rise. AWS reported a significant 24% growth, while Amazon plans an increased capital spending on AI and satellites. Analysts had anticipated slightly higher earnings and lower spending, leading to a 9% drop in after-hours trading.

Amazon, the Seattle-based tech giant, reported its fourth-quarter earnings, which fell slightly below Wall Street's expectations despite an impressive surge in sales. The company recorded a net income of USD 21.2 billion, showing modest growth from the previous year's USD 20 billion.

Amazon's revenue climbed 14% to USD 213.4 billion, driven by a notable 24% rise in its cloud computing segment, Amazon Web Services (AWS), which generated USD 35.6 billion. Analysts projected AWS revenue at USD 34.9 billion while expecting overall earnings of USD 1.97 per share.

CEO Andy Jassy outlined ambitious plans to boost capital expenditure to USD 200 billion, focusing on artificial intelligence, robotics, semiconductors, and satellites. This significant increase, compared to the anticipated USD 147 billion, contributed to a nearly 9% decrease in Amazon's stock during after-hours trading.

(With inputs from agencies.)