Amazon to report slower growth for fourth quarter

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According to some analysts, AWS’ growth will slow across the whole of 2023, with Q4 showing a 22% increase. The analysts expect Amazon to post sales of $145.8 billion for the three months ended Dec. 31, up 6% from a year earlier.

Net income is expected to be $1.98 billion, down 60%.  Amazon reported $149.2 billion in revenue, up 9% year on year, exceeding both analyst expectations and the company’s own guidance. However, rising costs are reducing Amazon profits, which fell 98% year on year to $278 million, or $0.03 per share. This includes a $2.3 billion pre-tax valuation loss attributed to the company’s investment in Rivian.

Cloud growth appears to be slowing, as it has in other parts of the technology industry, which has boomed over the last decade and accelerated during the pandemic, when businesses adopted services that could facilitate remote work.

According to Gartner estimates, Amazon Web Services will command nearly 39% of the cloud infrastructure market in 2021. AWS’ main competitors are Microsoft’s Azure and Google Cloud.

Analysts predicted $145 billion in revenue and $0.17 earnings per share for the December quarter. Amazon Web Services revenue grew only 20% in the fourth quarter, compared to 40% growth the previous year, indicating a slowdown in overall tech spending. Amazon warned in October that businesses were reducing their cloud spending, which it said continued in Q4.

The sources for this piece include an article Datacenterknowledge.

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