Although Amazon wanted to dodge the spotlight in the commercial war of President Trump, he had not occurred for the largest online retailer in America.
Firstly, the e-commerce company was entangled in the fleeting spit on Tuesday with the White House for a defective relationship that Amazon would show the buyers the costs of the rates.
Two days later, the economic reality came when Amazon reported among the slowest growth ever in its detailed retail activity.
The largest region of Amazon contributed to the financial results of the first quarter that showed the slowest overall growth of sales from the depths of the pandemic, according to reports from the company. Sales from January to March have risen to $ 155.7 billion, 9 % more than the same period of the previous year. The profit was $ 17.1 billion, an increase of 64 percent.
For the current quarter, which ends in June, Amazon told investors to provide for sales from $ 159 billion to $ 164 billion and that operating profits are reduced to $ 13 billion. Amazon added “tariff and commercial policies” to the list of factors which according to which it can make its forecasts uncertain.
The results were mixed with respect to Wall Street's expectations. The price of Amazon actions has decreased by more than 3 percent in post -united negotiations after the release of profits.
“Obviously, none of us know exactly where the rates will establish or when,“ Andy Jassy, Amazon's CEO, said in a call with investors. He said the company is “rather maniacally concentrated” on maintaining prices, purchasing an extra inventory before rates and will help sellers on the Amazon market to do the same.
Investors have tried to destroy the way the Trump President Trump's rates would affect Amazon's customers. Some hypothesized that consumers may have accelerated purchases in March and April in view of multiple rates that begin, increasing spending in an otherwise uncertain environment.
Jassy said that Amazon's customers have made some “intense purchases” of some types of products, although it has not specified which ones.
Many different components guide the entrances in the Amazon retail sector. Online sales of products that offers customers directly grew by 5 % to $ 57.4 billion and the services that provides sellers that lists the products on its site have grown by 6 % to $ 36.5 billion.
Advertising, which investors consider a promising and profitable activity, grew by 18 % to $ 13.9 billion.
Investors have focused for a long time on Amazon's cloud computing business, which generates most of the company's profits. Jassy, who managed the cloud business before his promotion to the CEO, built the company's artificial intelligence offers. The cloud business grew by 17 percent, to $ 29.3 billion, in the first quarter.
Jassy said that Amazon could have sold multiple cloud services if he had more skills in his data centers, the remote buildings full of computers that feed the internet and to the modern ones who added that they expect the constraints to breed themselves in the coming months. The company ran to build more infrastructures and the press release on Thursday showed that Amazon spent more than $ 24 billion in capital expenses in the first three months of the year, about $ 2 billion less than the previous quarter. In February, Amazon said he was planning to spend about $ 100 billion on capital expenses in 2025.