From Nasdaq: 2025-05-02 10:21:00

Amazon.com Inc. (NASDAQ: AMZN) reported a strong first quarter, with revenue up nearly 9% year over year to $155.7 billion, beating expectations by $580 million. Despite the beat, the tech giant fell in early trading on Friday due to cautious guidance for Q2 and shares down over 20% from their February high.

Amazon delivered a clean beat in Q1, with operating income exceeding expectations, strong margins, and profitable growth in the AWS division. Management highlighted consistent consumer behavior, reaffirming focus on low pricing, broad selection, and fast delivery to support market share dominance.

Wall Street remains bullish on Amazon, with firms like Wedbush, Evercore ISI, and Deutsche Bank reaffirming Buy ratings with price targets ranging from $210 to $260. Analysts cite catalysts like automation in logistics, rising Prime prices, and AI opportunities in cloud and retail.

Despite beating expectations, Amazon’s Q2 guidance was cautious, citing macro uncertainty, cost pressures from the Kuiper launch, and ongoing tariff questions. The stock has yet to break higher despite analyst support, indicating investor hesitation to chase the rally until a stronger signal is confirmed.

Amazon’s Q1 report was strong, with analysts optimistic about the company’s long-term prospects. However, caution in the guidance and lack of stock momentum suggest sentiment may need more time to fully recover. Long-term investors may see this as an ideal entry point, while momentum traders may wait for a stronger move off the lows.



Read more at Nasdaq:: Amazon Earnings: 2 Reasons to Love It, 1 Reason to Be Cautious