Amazon sales surged 14% during the fourth quarter, helped by strong holiday spending and better-than-expected growth in its cloud computing unit.
FILE - The Amazon logo is displayed at a news conference in New York on Sept. 28, 2011. FILE - People walk out of an Amazon Go store in Seattle, March 4, 2020. – Amazon sales surged 14% during the fourth quarter, helped by strong holiday spending and a better-than-expected growth in its prominent cloud computing unit.
But the Seattle-based online behemoth's shares fell nearly 10% in after-hours trading as its profits came in slightly below analysts' expectations. Investors also didn't seem to like Amazon's announcement Thursday that it was stepping up its capital expenditure to $200 billion this year, up from $125 billion last year as it sees opportunities in artificial intelligence, robots, semiconductors and satellites.Wall Street analysts were expecting spending to rise to around $147 billion this year, according to FactSet.n the second round of mass layoffs for the e-commerce company in three months. It has said that most of these cuts are part of an effort to reduce the workforce that swelled during the pandemic, not because of artificial intelligence. Separately Amazon said it would cut about 5,000 retail workers, according to notices it sent to state workforce agencies in California, Maryland and Washington, resulting from its decision toof 14,000 job cuts in October, bringing the total to well over 30,000 since Amazon's CEO Andy Jassy first signaled a push for AI-driven organizational changes. Analysts are analyzing retailers’ performances for insight into how shoppers spent during the holidays and what’s in store for 2026. They also want to know how the online behemoth is managing cost increases given all the uncertainty around President Donald Trump’s tariffs. Amazon is also under pressure to shore up confidence that its computing arm Amazon Web Services is just as powerful as Microsoft’s Azure and Google’s Google Cloud platform. Amazon delivered 24% growth for AWS in the fourth quarter, the fastest in 13 quarters, the company said. That followed 20% growth in the third quarter and a 17.5% increase in the second. Meta, Apple and other Big Tech firms are expected to ramp up their spending on artificial intelligence this year. After pouring $91 billion into capital expenditures devoted mostly to AI, Alphabet, the parent company of Google, disclosed Wednesday thatAmazon also continues to invest in its speedy fulfillment network, through a combination of robotics, AI technology and more efficient warehousing. The online retailer said it now delivers groceries in 5,000 U.S. cities and towns. In many of them, customers can get same-day delivery of fresh produce and other perishables. Based on strong customer feedback, it said it plans to expand its same-day delivery to more places this year.Last week, it said that it was closing almostwithin days as it narrows its focus on food delivery and its grocery chain, Whole Foods Market. Some of the shuttered stores will be converted into Whole Foods locations, the company said in a blog post last week. Amazon reported net income of $21.2 billion, or $1.95 per share, for the three-month period ended Dec. 31. That compares with $20 billion, or $1.86 per share, in the year-ago quarter. Revenue rose to $213.4 billion in the fourth quarter, compared with $187.8 billion in the year-ago period. Analysts were expecting $1.97 per share on sales of $211.4 billion, according to analysts polled by FactSet.The company said that it expects sales to be between $173.5 billion and $178.5 billion for the first quarter.Copyright 2026 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed without permission.Paxon high schoolers stage walk out during lunch to protest ICE1:07City starts foreclosure process on long-troubled home in St. Augustine3 women, 1 teen shot during fight in Northwest Jacksonville: JSOBlown tire believed to spark 120-acre Baker County wildfire amid severe drought conditionsThe Melanin Market’s grassroots beginnings turn a Historic Eastside street into an economic engineThe Melanin Market’s grassroots beginnings turn a Historic Eastside street into an economic engineMassive drug bust involving FBI ends with 55 of 56 arrests in Glynn CountyPutnam County residents still dealing with effects of wildfireStar-filled baseball class headlines national signing day at Trinity ChristianNational signing day: Mandarin honors athletes signing with college programs11 Chinese nationals indicted in marriage fraud scheme involving Jacksonville Navy sailorsFlorida nonprofit that helps veterans and low-income homeowners expands to JacksonvilleFatal stabbing in Orange Park has shaken up residentsHeavy smoke prompts school, road closures in Putnam County▶Westside brush fire 'under control,' JFRD says; minimal damage done to nearby fences, yard materials▶Council committees opt to shift control of $40M in Eastside community benefits funding back to cityRiver City Guide: Fun to liven up the beginning of the month from Feb. 5 -8Jacksonville pastor honored by FBI for helping rehabilitate gang members
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Bahama Breeze is closing: Darden to shutter 14 locations, convert 14 others to different brandsAfter 30 years since opening its first Bahama Breeze restaurant on International Drive in Orlando, Florida, Darden Restaurants Inc. said it will permanently close 14 of the chain’s 28 restaurants, while converting the remaining locations to other concepts.
Read more »
Here's the severance Amazon is offering Amazon Fresh employeesBusiness Insider tells the global tech, finance, stock market, media, economy, lifestyle, real estate, AI and innovative stories you want to know.
Read more »
Black History Month Events to Attend in NYC Feb. 8-14As Black History Month continues, here are some events going on in New York. These events showcase the excellence of Black history.
Read more »
14 Valentine's Day Horror Stories'I never looked at him the same after that.'
Read more »
Webster Schroeder holds off Hilton, runs win streak to 14Webster, N.Y. During halftime Tuesday night, Webster Schroeder honored its girls’ volleyball team that won the New York State Public High School Athletic Assoc
Read more »
Nancy Guthrie's garage door closed, and the 14-hour mystery over her abduction beganInside the 14 hours between when Nancy Guthrie was last seen and family members discovered she was missing.
Read more »