Amazon.com Inc. Down 8.81% To $103.05 After Earnings Miss

Amazon.com, Inc. (AMZN) missed earnings projections on 2/2/2023 for Q4 2022.

Amazon.com Inc.'s earnings came in at an EPS of $0.03 per share, 82% lower than estimates for an EPS of $0.17 per share. The firm's earnings are down 90% since reporting $0.29 per share in the same period a year ago. Remember, earnings reported were on an adjusted basis, so they may not be comparable to prior reports and/or analyst estimates.

Revenues were upbeat at $149.2 billion. That is an increase of 8.58% in revenues from the year-ago report and is 2.60% higher than consensus estimates set at $145.4 billion.

The stock is down 8.81% to $103.05 after the report.

Despite revenues increasing, earnings decreased, signaling a decline in profit margins.

Wall Street Analysts had an average rating of Strong Buy on the stock prior to the report.

Trading in the five days leading up to the report earned Amazon.com Inc. a Bullish Sentiment Rank from InvestorsObserver.

Prior to the report, InvestorsObserver gave the stock an overall score of 32. Meanwhile, the average Wall Street analyst rated the stock a Strong Buy.

Amazon is a leading online retailer and one of the highest-grossing e-commerce aggregators, with $386 billion in net sales and approximately $578 billion in estimated physical/digital online gross merchandise volume in 2021. Retail-related revenue represents approximately 80% of the total, followed by Amazon Web Services' cloud computing, storage, database, and other offerings (10%-15%), advertising services (5%), and other. International segments constitute 25%-30% of Amazon's non-AWS sales, led by Germany, the United Kingdom, and Japan.