Amazon won more in the first quarter, but prepares for a worse environment in the coming months for the impact of Donald Trump’s commercial war. Among factors such as tariffs, exchange rates or fear of recession, have submitted gain forecasts that have disappointed.
Between January and March the Electronic Commerce giant won 17,127 million dollars, 64% year -on -year. The strong rebound is because it compares with a first quarter of 2024 in which an exceptional position was pointed out for its participation in the electric manufacturer Rivian.
In any case, there is a remarkable impulse in the cloud business (AWS), which grows 17%, to about 30,000 million. It is somewhat less than previous quarters, 19%, and disappoints investors, who see Microsoft and Alphabet stronger in the segment. Digital sales remain the main income, with 57,407 million, as well as sales to third parties, with 36,512 million. The total turnover of the company stood at 155,667 million, 8% more, with a slowdown in markets outside the US.
More curves in the future
The results improved what is expected by analysts, but so far the good part. The shares fell more than 3% in operations after the closure of the market due to bad perspectives in the future. The perspectives that the tariffs and “an unfavorable impact” for exchange rates, with a weakened dollar. The operating benefit is raised at 13,000-17.5 billion for this quarter, below what is expected by analysts. If it remains in the lower fork, the business would go back.
“Obviously, nobody knows exactly where or when tariffs will be settled,” said the CEO, Andy Jassy, after the publication of the results. “We have not yet observed any decrease in demand. To some extent, we have observed an increase in purchases in certain categories, which could indicate an early supply to any possible tariff impact,” he added.
Amazon points out that forecasts reflect their expectations as of today, but are subject to a “substantial uncertainty” by factors such as “fluctuations in exchange rates”, “tariff and trade policies” or changes in the consumer due to “recession fears.”
Francesc Peirón
This same week Trump charged against Amazon’s plan to show the impact of tariffs on their shipments, calling it a “hostile act”, which caused the company to end up rectifying.
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