Amazon's first-quarter earnings beat expectations, but stock fell after hours due to economic concerns

From Nasdaq: 2025-05-05 06:09:00

In Amazon’s first-quarter earnings report, the company exceeded expectations with a 9% revenue growth to $155.7 billion and earnings per share of $1.59. Despite a positive outlook for the second quarter, Amazon stock fell after hours due to economic concerns and tariff threats. CEO Andy Jassy expressed readiness to face challenges.

Amazon’s cloud business, Amazon Web Services, saw a 17% revenue growth to $29.3 billion, but it continues to lag behind competitors like Microsoft and Alphabet. Microsoft reported 33% growth in Azure, while Alphabet posted 28% growth to $12.3 billion in Q1. Amazon is also falling behind in AI development.

Investors are advised to consider diversifying into Microsoft and Alphabet, which are outpacing Amazon in cloud computing and overall revenue growth. Selling Amazon stock might be premature given its growth and valuation, but its competitors offer compelling alternatives. A recent “Double Down” stock recommendation highlights potentially lucrative investment opportunities.

The Motley Fool has positions in and recommends Alphabet, Amazon, and Microsoft. The views expressed in this article are solely the author’s and do not reflect those of Nasdaq, Inc. Consider joining Stock Advisor for valuable insights on investment opportunities.



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