Amazon reports an unexpected ``14% increase in sales'' in the fourth quarter of 2023, serious about investing in generation AI
Amazon announced its financial results for the fourth quarter of 2023 (October to December) on February 1, 2024. As a result, Amazon's sales for the same period showed an increase that exceeded market expectations, and the outlook for efforts aimed at incorporating generation AI into many services was shown.
Amazon.com, Inc. - Amazon.com Announces Fourth Quarter Results
Amazon (AMZN) Q4 earnings report 2023
https://www.cnbc.com/2024/02/01/amazon-amzn-q4-earnings-report-2023.html
Amazon posts AI-fueled cloud, ecommerce growth, shares jump | Reuters
https://www.reuters.com/technology/amazon-reports-quarterly-revenue-above-estimates-2024-02-01/
Amazon's sales for the fourth quarter of 2023 will be $170 billion (approximately 24.89 trillion yen), an increase of 14% year-on-year, compared to the average analyst forecast of $166.21 billion (approximately 24.33 trillion yen). ) exceeded. Operating income also increased significantly from $2.7 billion (approximately 395 billion yen) in the same period last year to $13.2 billion (approximately 1.93 trillion yen).
Furthermore, net income for this period was $10.6 billion (approximately 1.55 trillion yen), a significant increase from $278 million (approximately 40.7 billion yen) in the same period last year. Investors appreciated this strong performance, and Amazon's stock price rose more than 8% in after-hours trading.
This fiscal year's results reflect sales from the year-end sales season and Amazon Prime Day in October, both of which provided a better-than-expected tailwind. CEO Andy Jassy said, 'This fourth quarter was a record-breaking holiday shopping season, capping off a strong 2023 for Amazon. As we enter 2024, our team continues to deliver results at a rapid pace. There's still a lot going on that excites us.'
Amazon has implemented rationalization measures such as laying off a total of 27,000 employees from the end of 2022 to mid-2023, and reducing personnel at Prime Video, its movie studios , and live streaming distribution platform Twitch. .
Regarding whether or not this streamlining of the business will continue, Chief Financial Officer (CFO) Brian Olsabsky said, ``We will continue to take a cautious approach to new investments, but we plan to continue to streamline our business by 2024.'' 'I don't think it's a year of emphasis,' he said.
AI technology is attracting attention as a new technology that Amazon is investing in. For example, prior to announcing its financial results, Amazon announced Rufus, an AI that supports shopping by being integrated into the app.
Amazon announces shopping advice AI ``Rufus'' that answers questions such as ``Tell me the difference between ○○ and ○○'' - GIGAZINE
In addition to Rufus, the consumer AI, Amazon is also focusing on Q , a chat AI for businesses, Bedrock , a generative AI tool, and Trainium , a processor specializing in machine learning. In a conference call with List, he said he expects revenue from generative AI, while still relatively small, to generate tens of billions of dollars in revenue over the next few years.
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