AN D’Hynenzio, AP Business Writer
NEW YORK (AP) – Amazon recorded first quarter profits and sales that beat analyst forecasts, highlighting online behemoth retention for shoppers seeking wide selection in a low price and uncertain economy.
The Seattle-based company also reported massive sales growth rates for its renowned cloud computing arm Amazon web services, saying the market was closed on Thursday.
But President Donald Trump’s uncertainty about tariffs and consumer spending has clouded Amazon’s outlook.
Trump’s volatile trade policies (including a 145% tariff on China) have threatened to paralyze businesses, raise prices and hurt consumers. However, large companies like Amazon are expected to navigate the climate better than small retailers.
Amazon, along with many major retailers and suppliers, has tried to beat the watch by bringing in foreign goods before Trump’s tariffs came into effect. Andy Jussy, Amazon’s president and CEO, told analysts in the revenue that many of the third-party sellers did the same thing. And because of the move, a considerable amount of third-party sellers have yet to change their pricing, he said.
Jassy vowed to do everything Amazon can to keep prices low, and while he acknowledged the challenges ahead, he promoted Amazon’s vast model of choice that will help him navigate this new climate.
“When there is an uncertainty, customers tend to choose the provider they trust the most,” Jassy told analysts. “Given our very wide selection, low prices and fast delivery, we have a more relative market segment share from these uncertain times than we started, setting it better for the future.”
On Friday, Trump also ended trade exemptions that allow for less valuable shipments from China. This is a favourable exemption for e-commerce companies set up in China, such as Shein and Temu.
New tariffs could benefit Amazon by increasing the costs of competitors. But it also affects Chinese sellers who connect with American consumers on the company’s shopping platform. Additionally, it could raise prices on the recently launched online storefront, which Amazon has set up ships low-cost products directly from China. The storefront called Amazon Haul was Amazon’s answer to Shein and Temu.
Amazon said it had won $17.1313 billion, or $1.59 per share, in the quarter that ended March 31. This is up from $10.43 billion (98 cents per share) in the same period last year.
Revenue rose 9% to $155.7 billion, up from the same period last year to $143.3 billion.
Amazon Web Services revenue rose 17% in the first quarter to $29.3 billion.
Amazon is one of the biggest players in the race for generative artificial intelligence. Like other high-tech companies, technology investments are increasing, spending billions of dollars expanding data centers that power AI and cloud computing. The company is also investing in its own computer chips and computer chips developed by Nvidia. We also expanded our own AI model to integrate generated AI into other parts of our business.
In the first quarter, Amazon reported that it was spending $25.02 billion on more than $14.92 billion in real estate and equipment spent in 2024 over the same period.
This week, Amazon announced a $4 billion investment over 2026, expanding its rural delivery network to bring rapid delivery to customers in low-density regions across the United States.
The company said it expects revenue to be between $159 billion and $164 billion in the second quarter. Analysts projected $161.2 billion, according to FactSet.
It also forecasts operating profit for the second quarter to be in the range of $13 billion to $17.5 billion. Analysts are looking for $17.6 billion, according to FactSet.
Amazon’s shares fell more than 2% in after-hours trading on Thursday.
Original issue: May 1, 2025, 4:57pm EDT
