Amazon delivered record results and better than expected revenues in the fourth quarter, arising from strong holiday sales and high margin business growth.
But the shares fell more than 2 percent in the after-sales in New York as the online retailer issued sales guidance for the first quarter that came under analysts' estimates.
Net income increased by 63 percent to $ 3 billion, or $ 6.04 per share, from $ 1.86 billion, or $ 3.75 per share in the same quarter a year ago. It came to Wall Street's estimate of $ 5.65 per share and marked the third consecutive quarterly record.
Revenue increased by 20 percent to $ 72.4 billion, ahead of analysts' consensus estimates of $ 71[ads1].95 billion and near the top end of the company's $ 66.5 billion guidance line to $ 72.5 billion.
Amazon Web Services, its cloud computing business, increased revenue 45 percent to $ 7.4 billion and operating profit increased 61 percent to $ 2.2 billion.
In its North American retail business, the largest revenue source, net sales increased by 18 percent to $ 44.1 billion. Revenue increased by one-third to $ 2.5 billion.
Other revenue, which consisted mainly of its growing advertising business, almost doubled from one year ago to $ 3.4 billion.
Amazon forecasts net sales in the first quarter would grow between 10 and 18 percent to $ 56 billion to $ 60 billion. Operating revenues are expected to come in between $ 2.3 billion and $ 3.3 billion, up from $ 1.9 billion in the first quarter of 2018.
Wall Street analysts predicted $ 61 billion in first quarter net sales and operating revenues of $ 3 billion.