Amazon sinks 13% on Q1 results: ‘market is very disappointed’

Amazon Sinks 13% on Q1 Results: ‘Market is Very Disappointed’

Amazon, the world’s largest online retailer, has reported its Q1 results, and the market is not happy. The company’s stock has dropped 13% in after-hours trading, as investors react to the news that Amazon missed its revenue and earnings targets.

The company reported revenue of $59.7 billion, up 17% from the same period last year, but below the $60.8 billion that analysts had expected. Earnings per share came in at $7.09, well below the $7.29 that analysts had predicted.

The disappointing results were driven by a slowdown in Amazon’s core retail business, which saw revenue growth slow to 10% in Q1, down from 17% in the same period last year. This was partly due to the impact of the strong US dollar, which reduced the value of international sales.

Amazon’s cloud computing business, Amazon Web Services (AWS), continued to perform well, with revenue up 41% to $7.7 billion. However, this was also below analysts’ expectations of $7.8 billion.

The company’s guidance for Q2 was also weaker than expected, with revenue expected to be between $59.5 billion and $63.5 billion, below the $62.4 billion that analysts had predicted.

The market’s reaction to Amazon’s results is a reminder of the high expectations that investors have for the company. Amazon has been one of the best-performing stocks of the past decade, with its share price increasing more than tenfold since 2009.

However, the company’s growth has slowed in recent years, as it has faced increased competition from rivals such as Walmart and Target. Amazon has also faced criticism over its treatment of workers and its impact on small businesses.

Despite the disappointing results, Amazon remains one of the most valuable companies in the world, with a market capitalization of over $900 billion. The company is also continuing to invest heavily in new businesses, such as healthcare and advertising, which could drive future growth.

Overall, Amazon’s Q1 results are a reminder that even the most successful companies can face challenges. However, with its strong brand, loyal customer base, and innovative culture, Amazon is well-positioned to continue to thrive in the years ahead.