Shares of Amazon (AMZN) are down about 2% after the e-commerce company issued weak forward guidance for this year’s second quarter.
The guidance overwhelmed what was otherwise a strong first-quarter print from Amazon.
The Seattle-based company reported earnings per share (EPS) of $1.59 U.S., which was ahead of the $1.36 U.S. forecast on Wall Street.
Revenue in the January through March period totaled $155.67 billion U.S., which topped the consensus estimate of $155.04 billion U.S. among analysts.
In addition to the top and bottom-line numbers, Amazon also reported that its Amazon Web Services (AWS) cloud computing unit brought in $29.30 billion U.S. of revenue during Q1. That was below the $29.42 billion U.S. expected on Wall Street.
Advertising sales in the quarter totaled $13.92 billion U.S., which was ahead of the $13.74 billion U.S. that was anticipated. The company’s online ad revenue grew 19% from a year ago.
Amazon’s online advertising business has grown in recent years to become the third biggest behind rivals Alphabet (GOOGL) and Meta Platforms (META).
Despite the largely positive results, Amazon issued underwhelming guidance for the current second quarter that overshadowed its print.
Management said that they expect sales this quarter to be between $159 billion U.S. and $164 billion U.S., representing growth of 7% to 11%.
Wall Street was looking for $160.9 billion U.S. of Q2 2025 revenue.
The company also said that it expects second quarter operating income to be between $13 billion U.S. and $17.5 billion U.S., which is below the $17.64 billion U.S. forecast of analysts.
So far in 2025, Amazon’s stock has declined 14% to trade at $190.20 U.S. per share.