Shares of Amazon dropped by 4 per cent in extended trade — erasing an earlier 7 per cent gain — after the e-commerce giant's reported earnings on Thursday beat estimates.
The retailer's revenue increased to $149.2 billion in the fourth quarter of 2022 compared with analysts' expectations of $145.2 billion, Refinitiv.
Amazon credited a “record-breaking holiday season” with its net sales. The company said the five-day period from Thanksgiving until Cyber Monday generated more than $1 billion in the US.
Amazon anticipates 2023 first-quarter revenue to be between $121 billion and $ 126 billion. Refinitive's analyst estimate expected the company's net sales to be $125.11 billion.
The company also plans to cut more than 18,000 jobs this year, citing economic concerns.
Amazon chief executive Andy Jassy said the company was “encouraged” by the progress it was making with its cost-cutting measures.
And Amazon Web Services fell short of fourth-quarter estimates, increasing sales to $21.4 billion compared with $22 billIion.
"In the short term, we face an uncertain economy, but we remain quite optimistic about the long-term opportunities for Amazon,” Mr Jassy said.
Reuters contributed to this report
