Amazon (AMZN) reported Q4 EPS of $1.86, well above the street estimates of $1.49. Amazon has been able to easily beat street estimates in each of the last 8 quarters. 
The company has been able to beat street estimates by about 20% to 25% for the last 5 quarters. 
While earnings growth remains very strong, although the average has been skewed by the outlier results from Q4 2023. 
Amazon just barely beat street estimates on sales, coming in at $187.792 billion vs expectations of $187.307 billion. The company has beaten sales estimates in 7 of the last 8 quarters. Total AWS sales remained steady at a 19% growth rate. 
The “beats” on sales have moderated significantly in the last few quarters. 
While sales growth remains steady around the 10% range. Pretty impressive for a $2+ trillion company with over $600 billion in TTM sales. 
The stock is down about 4% this morning. What gives? Despite the beat on earnings and sales, the company issued guidance for Q1 that was below what the market was initially pricing in. Before earnings, the street was expecting about $158.8 billion in Q1 sales, but the company ended up guiding in a range of $151-$155 billion.The market expects EPS growth of about 13% in 2025, on sales growth of about 10%. Which is roughly in line with the market average on EPS, and better than average on sales. However the forward PE is about 36.6x, which means the stock is trading about 3x its estimated growth rate. Which isn’t very exciting, but roughly in line with many of the MAG 7 stocks right now.Price broke below the prior swing high in the $233 range, so it looks headed back to its 50 day moving average for the time being. If that doesn’t hold, the next logical downside target appears to be around $216. Personally, I’d like to see the stock pull back in the range of $190 before even considering adding to the position.More By This Author:Despite The Miss On January Jobs Gains, The Details Under The Surface Were Strong
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