From Barchart: 2025-06-27 13:27:00

Amazon reported a 44% increase in net sales for the first quarter, reaching $108.5 billion. The company’s net income also more than doubled to $8.1 billion, beating analyst expectations. Amazon’s cloud computing division, Amazon Web Services, saw a 32% increase in revenue to $13.5 billion.

Despite the strong financial results, Amazon’s shares fell 5% in after-hours trading as the company provided lower-than-expected guidance for the second quarter. Amazon projected net sales to range between $110 billion and $116 billion, falling short of Wall Street estimates of $118.7 billion.

Amazon’s advertising business continued to thrive, with revenue growing 77% to $6.9 billion in the first quarter. The company’s CEO, Andy Jassy, highlighted the importance of the advertising segment as a key contributor to Amazon’s overall growth. The advertising revenue now represents 6.3% of Amazon’s total sales.

Amazon’s subscription services, including Amazon Prime, also saw a significant increase in revenue, reaching $7.6 billion in the first quarter. The company reported a total of 200 million Prime members worldwide, reflecting strong customer loyalty and retention. Amazon continues to invest in expanding its subscription offerings and benefits.

In response to the lower guidance for the second quarter, analysts raised concerns about Amazon’s future growth prospects and increased competition in the e-commerce and cloud computing markets. Despite the short-term setback, many analysts remain optimistic about Amazon’s long-term potential and its ability to innovate and adapt to changing market dynamics.



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