Here's our initial take on Amazon's (AMZN 2.97%) financial report.
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.
Amazon warned Thursday that “tariffs and trade policies” may complicate its future, becoming the latest company to raise tariffs in its earnings report as many cite market uncertainty aggravated by Trump's tariffs.
Amazon.com Inc (NASDAQ:AMZN) reported better-than-expected profits for the first quarter but slowing Amazon Web Services (AWS) revenue growth saw its shares pull back afterhours on Thursday. AWS sales increased 17% year-over-year to $29.3 billion, slightly below analyst expectations of revenue in the range of $29.4 billion to $29.45 billion.
Revenue at Amazon Web Services came in slightly lower than expected for the first quarter. The cloud unit announced a service for streaming video games during the quarter.
Revenue in Amazon's online ad business rose 19% to $13.92 billion. Amazon has emerged as a force in digital advertising, trailing only Meta and Google in the U.S.
Meta raised its capital-expenditure target, adding to recent upbeat signals around AI spending.
Amazon has promised to spend around $1 billion each year on theatrical releases, a figure that would fund between 12 and 15 films annually. This year Amazon has only four wide releases on the calendar so far, but the company is slated to have 14 in 2026 and 16 in 2027.
Amazon said Wednesday (April 30) that it will invest over $4 billion to expand its rural delivery network and provide faster delivery to millions of customers in less densely populated areas.
The Seattle-based giant said the investment and expansion would create over 100,000 new jobs.
Amazon said on Wednesday it is investing over $4 billion by the end of 2026 to expand its delivery network, which will focus on small towns across the United States.
Amazon announced it will spend $4 billion by the end of 2026 on expanding deliveries to small towns in rural America. After making two-day delivery the standard, the company has invested in shuttling packages to shoppers' doors in one day, or in some cases, within a few hours.