Saturday, September 6, 2025
  • Login
Forbes 40under40
  • Home
  • Technology
  • Innovation
  • Real Estate
  • Leadership
  • Money
  • Lifestyle
No Result
View All Result
  • Home
  • Technology
  • Innovation
  • Real Estate
  • Leadership
  • Money
  • Lifestyle
No Result
View All Result
Forbes 40under40
No Result
View All Result
Home Real Estate

Amazon cloud revenue, income forecast disappoint, shares slide

by Stephanie Irvin
in Real Estate
Amazon cloud revenue, income forecast disappoint, shares slide
Share on FacebookShare on Twitter


AMAZON.COM on Thursday reported first-quarter cloud revenue growth and forecast operating income below estimates, disappointing investors.

Shares of the company fell as much as 5 per cent in after-hours trading before moderating.

Amazon Web Services, the company’s cloud unit, recorded a 16.9 per cent increase in quarterly revenue, to US$29.27 billion, missing expectations of 17.4 per cent growth and US$30.9 billion in sales.

Rival Microsoft, by comparison, reported on Wednesday it had exceeded estimates for its Azure cloud unit. AWS revenue grew at its slowest pace in five quarters.

“It’s always felt like AWS and Google Cloud were taking the most share for quite some time, but maybe that’s starting to turn because Microsoft posted great numbers,” said Dave Wagner, portfolio manager at Aptus Capital Advisors. He said expectations for Amazon were higher after Microsoft’s strong performance.

High tariffs imposed by US President Donald Trump on goods imported from China have cast uncertainty on retailers such as Amazon. Some sellers, for instance, have said they plan to sit out the company’s heavily-promoted Prime Day sales event in July, Reuters reported.

BT in your inbox

Start and end each day with the latest news stories and analyses delivered straight to your inbox.

The Seattle company said operating income for the current quarter would be between US$13 billion and US$17.5 billion, compared with the average estimate of US$17.7 billion, according to LSEG data.

CEO Andy Jassy sought on a call with analysts to ease jitters about the tariffs, which are expected to boost retail prices in the coming months.

“We haven’t seen any attenuation of demand yet,” Jassy said. “We’ve seen some heightened buying in certain categories that may indicate stocking up in advance of any potential tariff impact.”

He added: “We also have not seen the average selling price of retail items appreciably go up yet,” noting that sales of lower-cost essentials were rising steadily.

Growth in revenue from third-party seller services more than halved to 7 per cent in the first quarter, excluding the impact of foreign exchange.

Amazon’s forecast for second-quarter sales was above estimates, however, a reassuring sign to investors that the e-commerce company would navigate uncertainty related to tariffs.

Amazon reported total revenue of US$155.7 billion for the first quarter ended March 31, compared with analysts’ estimate of US$155.04 billion, according to data compiled by LSEG.

The company expects net sales between US$159 billion and US$164 billion for the second quarter, compared with analysts’ average estimate of US$160.91 billion, according to data compiled by LSEG.

Amazon posted a 19 per cent jump in online ad sales to US$13.92 billion, surpassing analyst estimates. The company has become a major player in ad sales, trailing only Meta and Alphabet. REUTERS

Tags: AmazonClouddisappointForecastIncomeRevenueSharesSlide
Stephanie Irvin

Stephanie Irvin

Next Post
Instacart forecasts upbeat quarterly core profit on online grocery delivery demand

Instacart forecasts upbeat quarterly core profit on online grocery delivery demand

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Forbes 40under40 stands as a distinguished platform revered for its commitment to honoring and applauding the remarkable achievements of exceptional individuals who have yet to reach the age of 40. This esteemed initiative serves as a beacon of inspiration, spotlighting trailblazers across various industries and domains, showcasing their innovation, leadership, and impact on a global scale.

 
 
 
 

NEWS

  • Forbes Magazine
  • Technology
  • Innovation
  • Money
  • Leadership
  • Real Estate
  • Lifestyle
Instagram Facebook Youtube

© 2025 Forbes 40under40. All Rights Reserved.

  • About Us
  • Advertise
  • Contact Us
No Result
View All Result
  • Home
  • Technology
  • Innovation
  • Real Estate
  • Leadership
  • Money
  • Lifestyle

© 2024 Forbes 40under40. All Rights Reserved.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In