Amazon revenue climbs 9%, but outlook sends shares lower

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Amazon reported an summation   successful  revenue, but its outlook disappointed investorsAmazon reported an summation successful revenue, but its outlook disappointed investors. Photo: Johannes EISELE / AFP/File
Source: AFP

Amazon reported a 9 percent emergence successful first-quarter gross connected Thursday, but its outlook fell beneath expectations, sending its stock terms lower.

The online retail behemoth said income deed $155.7 cardinal successful the January-to-March period, but its stock terms dropped arsenic overmuch arsenic 4 percent successful after-hours trading connected Wall Street.

Amazon Web Services, the company's hugely palmy unreality business, saw income leap 17 percent to $29.3 billion, with operating nett reaching $11.5 cardinal arsenic companies progressively crook to AWS for AI infrastructure.

"We're pleased with the commencement to 2025, particularly our gait of innovation and advancement successful continuing to amended lawsuit experiences," CEO Andy Jassy said, highlighting caller AI offerings including the next-generation Alexa+ virtual assistant.

Amazon said it had launched respective AI initiatives during the quarter, including Amazon Nova generative AI models, portion expanding its Project Kuiper outer web to vie with Elon Musk's Starlink.

Looking ahead, Amazon forecast second-quarter nett income betwixt $159 cardinal and $164 billion, representing maturation of 7 to 11 percent. But this was little than what analysts had expected.

The outlook is particularly delicate for investors with speculation precocious connected however the question of precocious commercialized tariffs announced by President Donald Trump's medication volition impact Amazon's performance.

Trump has astir notably slapped 145 percent levies connected China, wherever galore US-bound products are made.

A study that Amazon was going to show the other outgo of the levies for customers connected its level drew a furious effect from the White House.

Amazon enforcement president Jeff Bezos called Trump to defuse the drama, and the institution rapidly said it had nary volition of executing the plan.

There is besides uncertainty astir whether tariffs volition dilatory spending -- the US economy already showed a contraction successful the archetypal 4th of the year.

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Source: AFP

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