Amazon.com Inc (NASDAQ:AMZN) stock dropped 4% in after-hours trading, erasing $100 billion from the company’s market value.
The decline followed strong fourth-quarter earnings that exceeded expectations but were overshadowed by weaker-than-expected guidance for the current quarter.
Amazon reported earnings per share of $1.86, surpassing the anticipated $1.49, while revenue reached $187.79 billion, slightly above estimates.
Despite a 10% increase in quarterly revenue from the previous year, Amazon projected first-quarter sales between $151 billion and $155.5 billion, falling short of the expected $158.5 billion.
The company attributed part of the revenue guidance shortfall to foreign exchange fluctuations, estimating a $2.1 billion impact.
Meanwhile, Amazon Web Services revenue grew 19%, but lagged behind cloud competitors.
The company also continues significant investments in AI and cloud infrastructure, planning to raise capital expenditures to $100 billion in 2025.
After-hours, the stock was off $9.67 at $229.16, valuing the business at just over $2.5 trillion.