Amazon CFO Brian Olsavsky indicated that capital expenditure for the current year would likely match last year's fourth quarter spending of $41.8 billion, with a focus on developing artificial intelligence software. Competitors like Microsoft and Alphabet also reported slow cloud growth, with increased costs for AI infrastructure development leading to higher anticipated capital expenditures for 2025, totaling around $366 billion among them.
Key takeaways:
- Amazon's retail business saw a 7% increase in online sales, reaching $120.165 billion, which helped offset weaknesses in its AWS cloud division.
- Overall revenue for Amazon reached $298.7 billion, with net income nearly doubling to $31.8 billion from the previous year.
- Amazon's AWS cloud division grew by 19% to $45.79 billion, slightly below market expectations, contributing to a 5% decline in Amazon's share price.
- Amazon is increasing capital expenditure to develop artificial intelligence software, similar to competitors Microsoft, Google, and Meta Platforms.