Tariff risks trigger market concerns, Amazon's earnings report exceeds expectations, but after-hours stock price still fell by 5% at one point
Amazon's latest financial report exceeded market expectations, but investor reaction was lukewarm, with the stock price dropping by as much as 5% in after-hours trading. The earnings per share for the first fiscal quarter were $1.59, and revenue was $155.7 billion, both higher than expected. However, the cloud computing business AWS showed weak performance, with revenue slightly below expectations. Analysts pointed out that the uncertainty of tariff policies is a major risk, and Amazon's stock price has fallen 13% this year
According to Zhitong Finance APP, despite Amazon's (AMZN.US) latest financial report exceeding market expectations, investor reactions have not been positive. In after-hours trading on Thursday, Amazon's stock price fell by as much as 5%.
Data released by Amazon showed that the company's earnings per share for the first quarter of 2025 were $1.59, higher than the Wall Street consensus estimate of $1.37; revenue was $155.7 billion, slightly above analysts' estimate of $155.2 billion; the revenue guidance for this quarter is between $159 billion and $164 billion, with the midpoint roughly in line with the market expectation of $161.2 billion.
However, the much-watched cloud computing business, Amazon Web Services (AWS), showed signs of weakness. AWS revenue was $29.3 billion, slightly below the market expectation of $29.4 billion, making it the only part of the financial report that did not meet expectations.
UBS analyst Stephen Ju maintained a "Buy" rating on Amazon stock before the earnings report but lowered the target price from $272 to $253. He pointed out that uncertainty from tariff policies is one of the main risks faced in the future.
It is understood that about half of the goods in the United States rely on imports. In April of this year, the Trump administration announced a 145% tariff on Chinese imports, although it later granted temporary exemptions for some technology hardware products. In response, China also imposed tariffs on American products. This series of trade measures is putting cost pressure on multinational companies.
Earlier, Amazon was reported to be planning to itemize tariff costs on consumer orders, but the company quickly denied this. The White House stated that if Amazon takes this measure, it would be seen as "provocative and politically motivated behavior."
As of Thursday's close, Amazon's stock price has fallen 13% this year. Despite core business growth, investor concerns about the sustainability of profit growth, slowing AWS growth, and the macro environment continue to put pressure on the stock price
