Amazon reported an increase of 88% in profits, but says that development may slow down

Amazon saw healthy consumer sales and a pickup in its cloud computing business in its latest quarter, but the company on Thursday told investors that further growth is expected to slow down.

Through December, the sales were $ 187.8 billion from October, which was 10 percent from a year ago. The profit increased by 88 percent to $ 20 billion. Both were almost in line with Wall Street’s expectations.

But the company indicated that 2025 would close for a weak start, sales in the current quarter are expected to grow between 5 percent and 9 percent, and the operational benefits may be less than a year ago.

Cloud computing increased by 19 percent to $ 28.8 billion in this quarter. Results – A indication as an indication that Amazon’s investment in Artificial Intelligence was especially strong that the company’s top cloud contestants, Microsoft and Alphabet recently reported the results that overwhelmed the investors Let’s do it. In the same quarter of 2023, Amazon’s cloud business increased just 13 percent.

Investors are also focused on Amazon’s cloud computing business as it has become a profit engine for the company. The operational benefit for the cloud business was $ 10.6 billion, which was responsible for half of the overall operational benefit of Amazon.

A Chinese Start-up, the tech industry has been shaken by the recent release of a efficient artificial intelligence system by Deepsek. Amazon quickly provided the deepsek system to use to customers, saying that this is an example of how Amazon has made its approach to mix and match users easily different AI tools. .

On a call with investors, Amazon Chief Executive Officer Andy Jassi said that AI should follow the pattern of other technical trends: as it becomes less expensive to deploy the system, customers will do ,Encouraged to be excited about what they could make that they thought they were always cost prohibitory and they usually spend a lot of overall overall. ,

The company created $ 26 billion to data centers, warehouses and other capital expenses in this quarter, exceeding its annual total of $ 77 billion. Mr. Jassi said that Amazon could sell more cloud computing if it had more data center capacity, especially chips for AI

Amazon told investors that the current rate of capital will continue during 2025, which means it could exceed $ 100 billion this year.

Despite all investments, for the first time Amazon ended the year with more than $ 82 billion cash.

Amazon’s share price was more than 4 percent in the hour trading.

Amazon’s North American retail trade, which includes services such as advertising and major membership, along with the sale of the product, increased by 10 percent in significant holiday purchases. The retail industry usually reported surprisingly strong holiday sale.

Amazon customers are buying more as the company offers rapid shipping. It has re -worked to keep its operations more than the customers, which has made them quick and less expensive. Amazon gave the same or the next day to more than nine billion items, more than seven billion in 2023.

Amazon’s North American operating margin exceeded 8 percent. Two years ago, it did not even break. The company has made more profits from its North American business by making its logistics efforts more efficient and expanded the most profitable parts of the business, such as advertisements, which were more than $ 17 billion in sales.

The company ended the year with 1,556,000 employees, only up to 2 percent.