Amazon CEO Andy Jassy spoke at the unveiling ceremony in New York on February 26, 2025.
Michael Nagle | Bloomberg | Getty Images
Amazon The first quarter results were reported better than expected, but the company provided soft guidance in the current period due to the company's comprehensive tariffs surrounding President Donald Trump.
The stock fell more than 2% in expansion trading.
This is the case with the analyst estimates surveyed by LSEG.
Wall Street is also studying other key revenue figures:
Amazon said it expects operating revenue in the second quarter to be between $13 billion and $17.5 billion, down from the consensus forecast of $17.64 billion.
The company expects sales to grow between $159 million and $164 billion this quarter, accounting for 7% to 11%. According to LSEG, analysts are expected to have $160.9 billion.
Amazon notes that “tariffs and trade policies” and “recession fears” are a range of factors that may cause their guidance to change. The company did not mention tariffs in its forward-looking guidance last quarter.
The topic of tariffs was the main focus of investors this quarter. Amazon faces a large impact on Trump’s tariffs primarily through its retail division. Amazon purchased some products from China, which was subject to a 145% levy attack.
Many sellers in Amazon's third-party marketplace make up more than half of the company's total sales, relying on the world's second-largest economy to manufacture or assemble their products. Some sellers have raised prices and reduced advertising spending as they face higher import costs.
The company landed in the White House crosshairs earlier this week on Amazon's plan to show shoppers the tariff costs. Amazon says there is no such change coming, and it only considers adding line items to products for sale through its discount storefronts, called Haul.
In a call with investors, Jassie said the “diversity” of Amazon’s third-party seller group means that some merchants will not “pass all or any tariffs to customers.”
He went on to say that given its inexpensive capabilities, Amazon could surface from an uncertain tariff environment. Jassy noted that when shoppers flocked to the scene and companies increased their market share.
Jassy acknowledged that Trump's temporary tariffs make it difficult to predict their impact on Amazon's business.
"It's hard to say what's going to happen to the tariff right now," he told investors. "It's hard to say where they're going to settle and when they're going to settle."
Net income was $17.13 billion, or $1.59 per share, compared with $104.3 billion a year ago, at 98 cents a share. Jassy has promoted Amazon's profits in recent years by cutting fees and making its logistics network more effective.
Amazon's cloud division saw sales slightly below consensus estimates, the third consecutive quarter of lost revenue. AWS revenue grew 17% in the quarter, slower than analysts expected. Sales in the unit increased by 18.9% last quarter.
Advertising is a highlight in the report. Sales in the unit rose 19% year-on-year to $13.92 billion, surpassing the growth of Amazon's core retail business.
Other online advertising companies, including Google and Break Warning about the potential for the possibility of collecting its marketing budget due to tariffs.
Amazon's young stock performance