As much as Amazon perhaps wanted to avoid the spotlight in President Trump’s trade war, there was no avoided for the largest online retailer in America.
First, the e-commerce company was entangled in the Volatile spit Tuesday with the White House About a defective report that Amazon Shoppers would show the rates.
Two days later the economic reality arrived when Amazon reported to the slowest growth ever in the North -American retail trade.
The region, the largest in Amazon, contributed to financial results of the first quarter to show the slowest total revenue growth since the depths of the pandemic, the company reported Thursday. The turnover from January to March increased to $ 155.7 billion, 9 percent more than the same period a year earlier. The profit was $ 17.1 billion, an increase of 64 percent.
For the current quarter, ending in June, Amazon told that investors expect a turnover of $ 159 billion to $ 164 billion, and will shrink to only $ 13 billion for operational profit. Amazon added “tariff and trade policy” to the list of factors that, according to her predictions, can make uncertain.
The results were mixed compared to the expectations of Wall Street. The share price of Amazon fell by more than 3 percent in aftermarket -trading after the winstrease.
“It is clear that none of us knows exactly where the rates will settle or when““ Andy Jassy, the Chief Executive of Amazon, said on a call with investors. He said that the company “focused quite maniacally” is at keeping the prices low, by buying extra inventory prior to rates and sellers on the Amazon market will help to do the same.
Investors have tried to untangle how President Trump’s rates would influence Amazon. Some speculated that consumers may have accelerated in March and April in March and April before more rates are in operation, which stimulates the expenditure in another uncertain environment.
Mr. Jassy said that Amazon customers have done some “increased buying” of certain types of products, although he did not indicate which.
Many different components encourage income in the Amazon store company. The online sale of products that it offers directly to customers grew by 5 percent to $ 57.4 billion, and the services it offers to sellers mentioning products on the site grew by 6 percent to $ 36.5 billion.
Ads, which investors consider a promising and profitable company, grew by 18 percent to $ 13.9 billion.
Investors have long focused on the Cloud Computing Business of Amazon, which generates the most profit of the company. Mr. Jassy, who led the cloud company to Chief Executive before his promotion, has built up the artificial intelligence offer from the company. The cloud company grew by 17 percent to $ 29.3 billion, in the first quarter.
Mr. Jassy said that Amazon could have sell more cloud services if it had more capacity in his data centers, the external buildings full of computers that put the modern internet in electricity and he added that he expects the restrictions to relieve in the coming months. The company raced to build more infrastructure, and the release on Thursday showed that Amazon spent more than $ 24 billion in capital costs in the first three months of the year, about $ 2 billion less than the previous quarter. In February, Amazon said that in 2025 it was planning to spend around $ 100 billion on capital expenses.
- Advertisement -
