Amazon Reports Q1 Earnings, Sales Increase 9%

Amazon reported strong first-quarter 2025 results, with net sales increasing 9% year-over-year to $155.7 billion and net income rising to $17.1 billion, reflecting growth across North America, international, and AWS segments. Despite outperforming Wall Street expectations on earnings and revenue, the company provided lighter-than-anticipated guidance for Q2 operating income, which led to a decline in its stock price. The earnings report comes amid heightened attention to the impact of President Trump's tariffs, as about half of Amazon's third-party sellers are based in China, making the company particularly vulnerable to tariff-related cost increases. A brief controversy arose when reports suggested Amazon might directly display tariff-driven price increases to consumers, drawing criticism from the White House; Amazon later clarified that such a move was never approved. CEO Andy Jassy affirmed Amazon's commitment to keeping prices low, despite tariff pressures and uncertain consumer sentiment. The situation illustrates the broader challenges facing major tech companies as they navigate shifting trade policies and economic headwinds.