Key Stats for AMZN Stock
- Today’s Price Change: -3%
- Current Share Price: $187
- 52-Week High: $243
- Analysts’ Price Target: $244
What Happened?
Amazon (AMZN) stock is down almost 3% today, after the e-commerce and cloud computing giant reported Q1 results that beat expectations but issued cautious Q2 guidance.
Amazon posted adjusted earnings of $1.59 per share, which was a big beat compared to estimates of $1.36 per share. Additionally, Amazon reported Q1 revenue of $155.67 billion, above estimates of $155.12 billion.
However, Amazon’s cloud division, AWS, missed revenue estimates for the third consecutive quarter, coming in at $29.3 billion against expectations of $29.42 billion.
For the second quarter, Amazon projected operating income between $13 billion and $17.5 billion, below the consensus forecast of $17.64 billion, and revenue between $159 billion and $164 billion.
CEO Andy Jassy acknowledged the uncertainty around President Trump’s sweeping tariffs but expressed optimism that Amazon could emerge stronger from this period, pointing to its experience during the COVID-19 pandemic when shoppers flocked to its platform.
See Amazon’s full Q1 earnings transcript (It’s free) >>>
What the Market Is Telling Us
The decline in AMZN stock reflects investor concerns about exposure to Trump’s tariffs, particularly through its retail business.
As much as 70% of Amazon’s goods come from China, and the e-commerce heavyweight faces headwinds from the 145% levy on Chinese imports.
Though advertising was a bright spot in Q1, growing 19% year-over-year to $13.92 billion, the market appears focused on the potential tariff impact on Amazon’s core retail operations and third-party marketplace.
The slower-than-expected growth in Amazon’s highly profitable AWS cloud business (17% versus the previous quarter’s 18.9%) adds another layer of concern, suggesting that even Amazon’s strongest profit engine isn’t immune to macroeconomic pressures.
With AMZN stock trading 24% below its all-time high, investors seem to be taking a cautious approach as they assess how Amazon will navigate this uncertain trade environment.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
