Like Amazon, he might have wanted to avoid the reflector in President Trump’s trade war, he couldn’t avoid the largest American online retailer.
First, the company of electronic trading was involved in the fleeting Tuesday with the White House above the defective news that Amazon will show customers the cost of tariffs.
Two days later, the economic reality arrived when Amazon announced among the slowest growth in the North American retail.
The region, the largest Amazon, contributed to the financial results of the first quarter, which showed the slowest overall sales growth from the depth of pandemic, the company informed on Thursday. Sales from January to March increased to $ 155.7 billion, 9 percent more than in the same period earlier. The profit was $ 17.1 billion, which is 64 percent.
For the current quarter, which ends in June, Amazon told investors to expect revenues of $ 159 to $ 164 billion and to reduce up to $ 13 billion for operating profits. Amazon added “tariff and business policies” to the list of factors, which states that its predictions may be uncertain.
The results were mixed compared to Wall Street expectations. Amazon’s shares price fell by more than 3 percent in spare parts trading after earning earnings.
“It is obvious that none of us know exactly where the tariffs settle or when.”,” Andy Jassy, CEO of Amazon, said at a call with investors. He said that the company is “quite maniacally focused” to keep prices down by purchasing another inventory in front of the tariffs and helping sellers on the Amazon market the same.
Investors are trying to untangle how the tariffs of the re -registered President Trump would affect Amazon customers. Some speculated that consumers may have accelerated purchases in March and April in March and April, which increases expenditures in an otherwise uncertain environment.
Mr. Jassy said that Amazon customers have made “increased purchase” of certain types of products, even if he did not specify which of them.
Many different components increase the revenue in Amazon retail. Online sales of products that offer customers directly increased by 5 percent to $ 57.4 billion and services that provide sellers on their website increased by 6 percent to $ 36.5 billion.
Advertising, which investors consider to be promising and profitable business, increased by 18 percent to $ 13.9 billion.
Investors have long focused on cloud computing Amazon, creating most of the company’s profits. Mr. Jassy, who ran a cloud business before his promotion to the CEO, creates offers of artificial intelligence of the company. The cloud business in the first quarter increased by 17 percent to $ 29.3 billion.
Mr. Jassy said that Amazon could sell more cloud services if he had more capacity in his data centers, remote buildings filled with computers that supply modern internet and AI, adding that he expected to reduce the restrictions in the coming months. The company raced to build more infrastructure, and the release on Thursday showed that Amazon spent more than $ 24 billion per capital expenditure in the first three months of the year, about $ 2 billion less than the previous quarter. In February he said he was planning to spend about $ 100 billion per capital expenditure in 2025.
