Amazon Reports Q1 Revenue Growth, Shares Drop on Weak Outlook

Amazon reported a 9% increase in first-quarter revenue, surpassing analysts’ expectations, with sales reaching $155.7 billion and profit rising significantly, driven in part by growth in its AWS cloud and new AI initiatives such as the next-generation Alexa and Project Kuiper satellites. Despite these strong results, Amazon’s shares fell by up to 4% in after-hours trading due to its cautious outlook for the second quarter, with projected sales and operating income falling short of Wall Street forecasts. The company cited uncertainties stemming from President Trump’s new trade tariffs, foreign exchange fluctuations, and broader economic unpredictability as key risks, especially given Amazon’s reliance on goods sourced from China. There was also investor concern that trade tensions and tariffs could dampen consumer spending and strain supply chains, affecting future growth. While Amazon emphasized continued innovation and customer experience improvements, including expansion in AI and cloud services, the mixed guidance highlighted ongoing challenges in navigating the current economic and geopolitical environment.