American e-commerce giant Amazon announced its Q1 2025 earnings report on the morning of April 2nd Taiwan time, showing robust growth in cloud and advertising services, with revenue and profits exceeding market expectations. However, Amazon's guidance for Q2 is relatively cautious, citing that "tariff and trade policy variables" could impact profit performance, leading to a post-market share drop of over 3.21%, bringing shares down to $184.1.

According to the report, Amazon's total revenue for Q1 reached $155.67 billion, a 9% year-over-year increase, outperforming analyst forecasts of $155.04 billion. Net income was $17.13 billion, or earnings per share of $1.59, significantly exceeding last year's figures of $10.43 billion and $0.98 per share. Key growth drivers were AWS cloud computing and advertising, contributing $29.3 billion and $13.9 billion respectively, with advertising revenue increasing 18% year-over-year, making it the fastest-growing segment.

For Q2, Amazon forecasts operating income to be between $13 billion and $17.5 billion, slightly below the market estimate of $17.64 billion, while sales are expected to be between $159 billion and $164 billion, also slightly below market consensus. CEO Andy Jassy admitted that heightened global trade policies and tariff risks might suppress consumer demand, especially as Amazon's retail division is heavily reliant on Chinese goods, which could be hit by the highest tariffs of up to 145% imposed by the U.S. Jassy emphasized that Amazon will maintain its low-price and diverse product strategy and continue investing in rural logistics networks, planning to invest $4 billion to expand delivery capabilities by the end of 2026 to capture market share during uncertain economic times.