Amazon issues disappointing revenue forecast, points to weakest growth on record

Amazon reported better-than-expected earnings and revenue for the fourth quarter, but it gave disappointing guidance for the current period. The stock slipped in extended trading.

Here are the numbers:

• Earnings: $1.86 vs. $1.49 per share expected
• Revenue: $187.79 billion vs. $187.30 billion expected

Wall Street is also watching several other numbers in the report:

• Amazon Web Services: $28.8 billion vs. $28.8 billion, according to StreetAccount
• Advertising: $17.3 billion vs. $17.4 billion, according to StreetAccount

Amazon said sales this quarter are expected to be between $151 billion and $155.5 billion. Analysts were expecting $158.5 billion, according to LSEG.

"This guidance anticipates an unusually large, unfavorable impact" from foreign exchange rates, the company said. The impact amounts to $2.1 billion, or 1.5%, Amazon said.

The U.S. dollar index — which measures the greenback against a basket of rivals — hit its highest level in more than two years last month, ahead of President Donald Trump's inauguration.  The dollar climbed steadily from late November through mid-January and has since fallen slightly.

Based on Amazon's forecast, the company only expects revenue growth of 5% to 9% in the first quarter. At the low end of the range, that would mark the slowest growth on record. Amazon went public in 1997.

Sales in Amazon's cloud division were in line with analysts' estimates of $28.8 billion, representing growth of 19% year over year. It's growing faster than the same period last year, when sales accelerated 13%.

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