Amazon(US:AMZN) EBSCN·2025-02-08 10:25Investment Rating - The report maintains a "Buy" rating for Amazon (AMZN.O) [1] Core Insights - Amazon's Q4 2024 results showed net sales of $187.79 billion, a year-over-year increase of 10.5%, exceeding Bloomberg consensus by 0.25%. Net profit reached $20.04 billion, up 88.3% year-over-year, surpassing consensus by 26.1% [4] - For Q1 2025, Amazon's guidance for net sales is between $151.0 billion and $155.5 billion, with a year-over-year growth of 5% to 9%, which is 4.76% below consensus. Operating profit is expected to be between $14.0 billion and $18.0 billion, 23.3% below consensus [4] - AWS revenue for Q4 2024 was $28.79 billion, growing 18.9% year-over-year, slightly below consensus by 0.11%. The growth rate has slowed compared to Q3 2024 [5] - The report highlights Amazon's ongoing expansion in logistics efficiency and AI infrastructure, with significant capital expenditures planned for 2025 [6][7] Summary by Sections Financial Performance - Q4 2024 net sales were $187.79 billion, with a net profit of $20.04 billion. The operating profit was $21.20 billion, reflecting a 60.5% year-over-year increase [4][5] - For 2025, revenue forecasts have been adjusted to $708.92 billion, a decrease of 1.6% from previous estimates, while net profit forecasts have been increased to $67.09 billion, an increase of 6.0% [8] Business Segments - AWS operating profit was $10.63 billion with a margin of 36.9%, showing a slight decline from previous highs. North America e-commerce operating profit was $9.26 billion, with a margin of 5.8% [5][6] - The report notes a continued expansion in logistics efficiency, with fulfillment costs decreasing [6] Capital Expenditure and AI Development - Capital expenditures for Q4 2024 were $26.3 billion, significantly above guidance, with plans for continued growth in 2025, primarily for AI infrastructure [6][7] - Amazon is enhancing its AI capabilities, with new models and technologies being introduced to improve operational efficiency and reduce costs [7]