All Investor Eyes On Amazon: Earnings Out Today And Tariffs Are ‘Biggest Focus'

Core Viewpoint - Amazon is set to report its Q1 2025 results, with a significant focus on how tariffs imposed by the Trump administration will affect its business operations and pricing strategies [1][2][7]. Group 1: Earnings Report Expectations - Amazon will announce its first-quarter results shortly after 4 p.m. EDT, followed by an earnings call at 5 p.m. [2] - Analysts predict a strong performance for Q1, with expected revenue of $155.1 billion and earnings per share of$1.37, indicating an 8% year-over-year sales growth and a 40% increase in profit [3]. - The AWS cloud segment, driven by artificial intelligence, is anticipated to contribute significantly to earnings growth, with expected annual sales growth of 18% at $29.4 billion [3]. - Guidance for Q2 is also expected, with Wall Street forecasting$161.2 billion in sales and $17.6 billion in operating profit for the current quarter [4]. Group 2: Market Reaction and Stock Performance - Amazon's stock rose by 3$190, reaching its highest intraday level in three weeks, coinciding with a broader market rally following strong earnings from other tech companies [5]. Group 3: Tariff Impact and Political Context - Amazon and Apple are notably affected by China tariffs, with Amazon's stock down 14% year-to-date, worse than the S&P 500's decline of 5% [7]. - The Trump administration expressed discontent with Amazon's potential plans to display tariff-related price increases, labeling it a "hostile and political act" [8].