Amazon's outlook disappoints as customer budgets stay tight [Reuters]
Microsoft Corporation (MSFT)
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Source: Reuters
And while Amazon's holiday revenue beat Wall Street's expectations, sales growth from its lucrative cloud-computing division slowed during the fourth quarter. Shares fell 5% in after-hours trade, erasing their 7% gain before the market's close Thursday. Facing high inflation and an uncertain economy, CEO Andy Jassy has aimed to slash costs across Amazon's vast array of businesses. Last month, he announced more than 18,000 employees particularly in its commerce and human resources divisions would lose their jobs. Amazon likewise has scaled back or shut down entire services like its virtual primary care offering for employers. At the same time, Amazon is seeking new revenue in the face of higher gas and consumer prices that have discouraged shoppers from splurging online, especially in Europe. The company plans to charge certain grocery delivery fees for U.S. Prime members, on top of recent price hikes to join the loyalty program; it has created an add-on generic-drug subscript
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