Amazon (AMZN) Shares Just Got Crushed

Amazon reported fourth quarter earnings after the bell on Thursday and investors were very disappointed.

Despite beating on profit, the retailer missed on revenues and also issued first quarter guidance that was lower than expected. Shares fell almost 5% in after hour trading.

The company posted EPS (GAAP) of $1.54 per share while the average analyst estimate was $1.35 per share. Revenue came in at $43.7 billion while the average analyst estimate was $44.68 billion. AWS Revenue was $3.5 billion versus the $3.6 billion average analyst estimate. For the full year, the company reported $136 billion in revenue, a 27% increase over last year’s $107 billion.

First quarter revenue guidance was revealed in the range of $33.25 billion and $35.75 billion, lower than the expected range of $34.52 billion to $36.95 billion. Amazon expects operating income between $250 million to $900 million in the first quarter, also lower than last year’s $1.1 billion.

Disclaimer: We have no position in Amazon.com, Inc. (NASDAQ: AMZN) and have not been compensated for this article.