Amazon (AMZN)

Amazon (AMZN) stock was trading around 2.8% lower in premarket on Friday as jitters persist about its latest set of results.

The ecommerce giant reported its fourth quarter results after the bell on Thursday, beating on the top and bottom lines, but providing worse-than-anticipated Q1 guidance.

Amazon's (AMZN) guidance for Q1 was well short of the midpoint of Wall Street's outlook. The company says it sees Q1 revenue of between $151bn and $155bn (£121m and £124m). Analysts were anticipating $158bn.

In a statement, the company said its Q1 revenue outlook, "anticipates an unusually large, unfavourable impact of approximately $2.1bn, or 150 basis points, from foreign exchange rates". Amazon (AMZN) added the leap year in 2024 added $1.5bn to net sales.

“Investor concerns about big spending on AI-related infrastructure have moved up a gear and Amazon (AMZN) is at the centre of the storm,” says Dan Coatsworth, investment analyst at AJ Bell.

“Last year we saw the first round of questions about how quickly companies would get a positive return on AI investments. Those concerns have now intensified as the big tech companies continue to throw billions of dollars on AI."

Even with AI spending jitters, the companies fundamentals are strong.

"It has never been afraid to try new things – if they work, great; if they don’t, it moves on," added Coatsworth. "Some experiments have been slightly off the mark, some were actual clangers, but it learns from each one. It can afford to take this approach because of the significant cash flow generated by the group. This strength should be recognised by investors, but it seems they’re fearing the worst over the very large bet on AI infrastructure."

•USD

(AMZN)

Follow  View Quote Details

Palantir (PLTR)

Palantir (PLTR) stock closed more than 8.9% higher on Thursday and looked set to continue its upwards trajectory on Friday following its fourth-quarter earnings report earlier in the week.

Over the last five days the software and data company's market cap has grown by more than 37%.

Palantir (PLTR) posted fourth quarter revenue of $827.5m (£665.7m), well above estimates of $775.9m, while adjusted earnings of $0.14 per share beat expectations of $0.11.

The AI software developer also offered a strong outlook for the coming year. For the first quarter, Palantir (PLTR) guided to revenue of between $858m and $862m and for the year, the company said it expected turnover to come in between $3.741bn and $3.757bn.

Matt Britzman, senior equity analyst at Hargreaves Lansdown (HL.L), said earlier in the week: "Palantir (PLTR) is the Michael Jordan of AI stocks right now, not only capturing investors imagination but delivering game-winning shots when it counts.

Story Continues

"The company’s massive retail investor fanbase is playing three moves ahead, but with its sky-high valuation, this ride could get bumpy. AI’s growing relevance keeps Palantir (PLTR) in the spotlight, but investors should buckle up for volatility."

•USD

(PLTR)

Follow  View Quote Details

Legal & General (LGEN.L)

Legal & General (LGEN.L) stock headed more than 5% higher on Friday morning in London, jumping as much as 11% as investors cheered news that it will sell its US protection business to Meiji Yasuda for £1.8bn.

The Japanese life insurance firm plans to take a 5% stake in as part of the move, the company said.

The deal is expected to close towards the end of 2025 and is still subject to regulatory approvals.

•USD

(LGEN.L)

Follow  View Quote Details

Pinterest (PINS)

Pinterest (PINS) stock gained 22% in premarket on Friday despite posting fourth-quarter earnings that lagged analyst estimates.

The company posted quarterly earnings of $0.56 per share, missing the Zacks consensus estimate of $0.63 per share. This was compared to earnings of $0.53 per share a year ago. Figures were adjusted for non-recurring items.

Revenues, however, came in at $1.15bn for the quarter ended December 2024. This compares to year-ago revenues of $981.3m. The company has topped consensus revenue estimates four times over the last four quarters.

The digital pinboard company's share price has been on a rollercoaster over the past year. For the year-to-date its stock price is down 17.7%.

Global monthly active users of the platform grew 11% year-on-year to 553 million in the fourth quarter. That was ahead of Wall Street estimates of 547.4m.

•USD

(PINS)

Follow  View Quote Details

Download the Yahoo Finance app, available for Apple andAndroid.

View Comments