As much as Amazon wanted to avoid attention in President Trump’s trade war, it had not been avoided for the largest online retailer in the United States.
First, the Electronic Commerce Company was entangled in the fleeting dispute on Tuesday with the White House on a defective report that Amazon was going to show buyers the costs of tariffs.
Two days later, economic reality came when Amazon reported among the slowest growth in its retail business in North America.
The region, the largest in Amazon, contributed to the financial results of the first quarter that show the general growth of sales from the depths of the pandemic, the company reported Thursday. Sales from January to March increased to $ 155.7 billion, 9 percent more of the same period of the previous year. The profit was $ 17.1 billion, 64 percent more.
For the current quarter, which ends in June, Amazon told investors that they were waiting for sales from $ 159 billion to $ 164 billion, and for operational profits to be reduced to only $ 13 billion. Amazon added “rates and commercial policies” to the list of factors that he says can make his forecasts uncertain.
The results were mixed compared to Wall Street expectations. The price of Amazon shares decreased more than 3 percent in the negotiation of the accessory market after the launch of the profits.
“Obviously, none or we know exactly where the rates or when““ Andy Jassy, Executive Director of Amazon, said in a call with investors. He said that the company is “quite centered” on keeping prices low, buying an additional inventory before rates and will help sellers in the Amazon market to do the same.
Investors have been trying to unravel how President Trump’s rates would affect Amazon customers. Some speculated that consumers may have accelerated purchases in March and April before more rates are activated, which increases spending into an uncertain environment.
Mr. Jassy said that Amazon customers have made some “augmented purchases” or certain types of products, although he does not specifically hear which.
Many different components generate income in Amazon’s retail business. Product online sales that offers customers directly grew 5 percent to $ 57.4 billion, and the services provided to vendors who list products in their place grew 6 percent to $ 36.5 billion.
Advertising, which investors see a promising and profitable business, grew 18 percent to $ 13.9 billion.
Investors have long focused on the Amazon cloud computing business, which generates most of the company’s profits. Mr. Jassy, who directed the cloud business before his promotion to the executive director, has been building the company’s artificial intelligence offers. The cloud business grew 17 percent, to $ 29.3 billion, in the first quarter.
Mr. Jassy said Amazon could have sold more services in the cloud if it had more capacity in their data centers, remote buildings full of computers that feed the modern Internet and AI, added that the executors to relieve in the coming months. The company has been running to build more infrastructure, and the launch on Thursday showed that Amazon spent more than $ 24 billion on capital expenses in the first three months of the year, approximately $ 2 billion less than the previous quarter. In February, Amazon said he planned to spend $ 100 billion on capital expenses in 2025.
