The online giant’s net sales $149.20 billion for the fourth quarter came in above analyst expectations of $149.20 billion. It’s adjusted earnings of 3 cents per share came in below estimates of 17 cents.
Amazon’s AWS cloud unit net sales came in at $21.38 billion, a growth of more than 20% compared to the same period in 2022. Operating income came in at $2.74 billion, beating analyst expectations of $2.51 billion.
Shares of Google parent Alphabet are trading 6% lower in after hours. The tech giant reported fourth quarter sales, excluding partner payouts, of $63.1 billion versus analyst expectations of $63.2 billion.
Advertising revenue fell by 4% while YouTube revenue dropped 8%, reflecting a challenging ad environment amid a slowing economy.
Sundar Pichai, CEO of Alphabet and Google, made reference to the company’s AI in its earnings release.
“Our long-term investments in deep computer science make us extremely well-positioned as AI reaches an inflection point, and I’m excited by the AI-driven leaps we’re about to unveil in Search and beyond.,” said Pichai.
Alphabet Inc. (GOOG)
Shares fell about 4% in after hours after the tech giant’s quarterly revenue of $117.15 billion declined by 5% year-over-year, missing analyst expectations of $121.14.
iPhone sales dropped 8% year-over-year to $65.8 billion, missing estimates of $68.3 billion. The company’s earnings per share of $1.88 vs also came in below expectations of $2.10.
Apple’s production and shipments were impacted last year amid COVID lockdowns in China.