Amazon reported on Thursday the first quarter income in the first quarter and the operating income provided under estimates, disappointing investors.
Company shares dropped up to 5% in the post -time trading before they moderate.
Amazon Web Services, the company’s cloud unit, recorded a 16.9% increase in quarterly revenue, to $ 29.27 billion, lost expectations of 17.4% of growth and $ 30.9 billion in sale.
Rival Microsoft, by comparison, reported on Wednesday that she had exceeded estimates for her unit Azure Cloud. AWS revenue increased at its slowest rhythm in five quarters.
“It has always been felt like AWS and Google Cloud were taking more parts for some time, but maybe that is starting to return because Microsoft posted great numbers,” said Dave Wagner, portfolio manager at Aptus Capital Advisors.
He said expectations for Amazon were higher after Microsoft’s strong performance.
The high tariffs set by President Trump on goods imported from China have cast uncertainty to retail sellers like Amazon. Some sellers, for example, have said they plan to reduce the prime minister’s sales event promoted many of the company in July, Reuters reported.
Seattle’s company said operating revenues for the current quarter would be between $ 13 billion and $ 17.5 billion, compared to average estimate of $ 17.7 billion, according to LSEG data.
Director General Andy Jassy asked in a call with analysts to facilitate tariff frauds, which are expected to raise retail prices in the coming months.
“We haven’t seen any weakening of the request yet,” Jassy said. “We have seen some purchases raised in certain categories that may indicate the collection of any possible tariff impact.”
He added: “We have also not seen the average price of sales of retail items significantly,” mentioning that sales of lower cost essences were steadily increasing.
Increased income from third -party seller services more than halved to 7% in the first quarter, excluding the impact of foreign exchange.
Amazon’s forecast for the sales of the second quarter was on the estimates, however, an insurance sign for investors that the e -commerce company would navigate to tariff uncertainty.
Amazon reported a total income of $ 155.7 billion for the first quarter completed on March 31, compared to the estimation of analysts of $ 155.04 billion, according to data compiled by LSEG.
The company expects net sales between $ 159 billion and $ 164 billion for the second quarter, compared to the average estimate of analysts of $ 160.91 billion, according to data compiled by LSEG.
Amazon posted a 19% jump in online advertising sales at $ 13.92 billion, exceeding analysts’ estimates. The company has become a leading player in advertising sales, following only meta and the alphabet.
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