2 Ways the Market's Underestimating Amazon in 2023
Last quarter certainly wasn't the one Amazon (NASDAQ: AMZN) shareholders were hoping for. Not only was it the least profitable Q4 since 2014, the report capped off the company's biggest-ever annual loss. Cloud computing revenue growth is slowing as well, and this segment's profit margin is starting to shrink. Despite beating analysts' revenue estimates, companywide earnings fell short of expectations, as did Amazon's guidance for the quarter now underway. No wonder share prices are down 10% since the numbers were posted Feb. 2.
Before giving up on Amazon stock, however, there are a couple of things you ought to know.
From a certain technical perspective, it's true that Amazon Web Services' (or AWS') sales growth is decelerating. Last quarter's year-over-year revenue increase of 20.2% is below the growth paces nearer 30% we saw for the several quarters leading up to Q4.
Source Fool.com
