"I think this is case of people expecting a little bit too much," said Joshua Mahony, a market analyst with IG in London.
Amazon posted fourth quarter earnings of $1 per share, missing analysts' consensus estimate of $1.56. However, the company posted its biggest quarterly profit in history.
"They have been suffering from FX headwinds," Mahony noted. Revenue rose 22% to $35.7 billion, slightly below Wall Street's estimates. Sales would have been up by 26%, but were dragged down by the strength of the dollar.
Mahony said Amazon didn't trump brick-and-mortar retailers during the holiday shopping season of 2015 to the extent that investors expected, but its cash flows improved. "I don't necessarily see it as bad as other people do in the markets," he added.
Amazon Prime membership grew 51% in 2015, and Mahony expects more strong growth ahead. "[With Amazon Prime], they get you to buy more products and utilize the TV services," referring to Amazon's robust video streaming service, which competes with Netflix (NFLX) - Get Report .
Meanwhile, the company's cloud services division, Amazon Web Services, saw revenue of $2.4 billion for the quarter, a 69% rise from the same quarter last year. The division boasts over 1 million subscribers.
As for guidance, the company expects revenue between $26.5 billion and $29 billion for the first quarter of 2016. That's 17% to 28% higher than the first quarter of 2015.
This stock is down 16.2% since its recent high on Dec. 29. Year-to-date, shares were down 6 as of the close Thursday%. The stock was trading lower by about 8% around 1 p.m. Friday.