Amazon Shares Fall 9% After Q4 Revenue Miss, Operating Margin Disappoints
Amazon’s stock plunged 9.0% after posting fourth-quarter revenue of $169.8 billion and operating margin of 4.0%, both below consensus forecasts. The sell-off coincided with a top analyst downgrading the shares to Hold while upgrading Roblox.
1. Q4 Financial Results
Amazon reported fourth-quarter revenue of $169.8 billion, missing the average estimate of $171.2 billion, and delivered a 4.0% operating margin versus 5.1% consensus. Net income fell to $5.4 billion, down from $7.2 billion in the prior year period.
2. Stock Performance
Shares dropped 9.04% in intraday trading following the results, marking the largest single-day decline since its last earnings report. Volume spiked to 75 million shares, double the 30-day average.
3. Analyst Rating Change
A leading Wall Street analyst downgraded Amazon to Hold, citing continued pressure on margins and heightened capital spending. In the same report, the analyst upgraded peer Roblox to Buy based on stronger than expected user engagement trends.