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Amazon kicked off 2025 with a robust first-quarter earnings report, surpassing Wall Street’s expectations on both revenue and profit. Yet, despite the positive numbers, the e-commerce and cloud giant’s stock slipped in after-hours trading as investors digested a cautious outlook and mounting concerns over tariffs and competitive pressures.
For the quarter ending March 31, Amazon reported revenue of $155.7 billion, a 9% increase year-on-year, edging past analyst forecasts. Net income soared to $17.1 billion, while operating income also impressed, rising 20% to $18.4 billion. Amazon Web Services (AWS), the company’s cloud computing powerhouse, continued to be a key growth engine, posting a 17% jump in revenue to $29.3 billion, though this fell just shy of some analyst projections.
Amazon’s advertising business also delivered, with revenue surging 19% to $13.92 billion, underscoring the company’s growing influence in the digital ad market.
CEO Andy Jassy highlighted the company’s rapid pace of innovation, pointing to the rollout of Alexa Plus, new AI-powered features, and the successful launch of Project Kuiper satellites, which aim to expand broadband access globally.
However, the upbeat results were tempered by Amazon’s forward guidance. For the second quarter, the company projected net sales between $159 billion and $164 billion, with operating income expected in the range of $13 billion to $17.5 billion. Both figures fell short of analyst estimates, fueling concerns about the impact of potential tariffs and rising costs on future profitability.
Jassy addressed these headwinds, noting no significant decline in consumer demand so far but acknowledging that tariffs could raise retail prices in the coming months.
While Amazon’s financial health remains strong and its growth engines are firing, the company faces an increasingly complex landscape. With competitive pressures intensifying and macroeconomic uncertainties looming, Amazon’s ability to innovate and adapt will be closely watched in the quarters ahead.
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