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Barchart
Barchart
Mohit Oberoi

Amazon Stock Fell on Weak Q1 Guidance. Can AI Reverse Its Slowing Revenue Growth?

Amazon (AMZN) released its fourth-quarter earnings yesterday after the markets closed. As has been the case for the last couple of quarters, the company’s guidance spooked investors. The low end of the guidance implies revenue growth of a mere 5% year-over-year in Q1 which would be the slowest growth on record. The upper end of the range fails to instill confidence either at 9% growth. Analysts expected the company’s revenues to rise in the low double digits in the current quarter. Meanwhile, Amazon upped its 2025 capex budget as it continues to invest aggressively in artificial intelligence (AI). 

In this article, we’ll discuss whether Amazon’s slowing growth should scare you or whether it is worth buying the stock for the AI opportunity. Let’s begin by looking at a snapshot of the company’s Q4 earnings.

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