Amazon made a tacit acknowledgement of the uncertain economic climate, offering guidance in its quarterly earnings report that fell short of Wall Street expectations.
The guidance for second-quarter operating income was included in the company’s report of first-quarter results, which saw earnings and revenue both beat analysts’ forecasts.
Earnings came in at $1.59 per share on an adjusted basis, with revenue of $155.7 million. The revenue figure slightly exceeded expectations, while earnings cleared the bar more easily. Advertising services revenue increased 18% from the year-ago quarter to reach $13.9 billion. The company is in the midst of a heavy push into video advertising, with its Prime Video service having last year put ads on all film and series titles. Prime Video also acquired NBA rights, to go with its successful exclusive streams of NFL Thursday Night Football.
After the earnings release hit the wire after the close of the market day, shares in Amazon fell nearly 4% in after-hours trading.
“We’re pleased with the start to 2025, especially our pace of innovation and progress in continuing to improve customer experiences,” CEO Andy Jassy said in the earnings release, in a quote that expressly avoided any mention of the economy.
Earlier this week, a press report about a purported plan by Amazon to display the exact tariff amounts being applied to various products across its vast digital retail site drew the ire of the White House. Earlier this earnings season, bank executives were outspoken in expressing their concerns about Donald Trump’s erratically applied tariffs would burden businesses and consumers.
MORE to come …
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