From Morningstar: 2025-05-02 09:06:00

Amazon reported first-quarter results that exceeded expectations, with revenue increasing by 10% year over year to $155.7 billion and operating margin at 11.8%. Results were positive despite currency impacts and prebuying behavior ahead of tariffs. AWS showed strong growth in AI workloads, advertising, and overall revenue. Guidance remains mixed, with solid revenue and light profitability. The fair value estimate is $240 per share.

Overall guidance includes revenue of $159 billion-$164 billion for the second quarter, with satellite launch costs for Project Kuiper expected to pressure margins temporarily. AWS capacity coming online later this year will have a similar impact. Tariff situation is being monitored, with guidance seen as solid. No major impact on long-term profitability is expected, with relatively flat margins projected for 2025.



Read more at Morningstar: Amazon Earnings: Good Quarter Overall With AWS…