Amazon.com Inc (NASDAQ:AMZN) stock is set to open lower on Friday after the e-commerce giant underwhelmed investors with its forecasts amidst the volatile tariff trading environment.
The Prime retailer reported a 9% rise in first-quarter net sales to US$155.67 billion.
Operating income increased to US$18.41 billion from US$15.31 billion in the same period last year.
Net income climbed to US$17.13 billion or US$1.59 per diluted share, up from US$10.43 billion or US$0.98 per share.
The company’s cloud division, AWS, recorded sales of USD 29.27 billion, representing a 17% year-over-year increase.
Looking ahead, Amazon expects second-quarter net sales between US$159 billion and US$164 billion. Operating income is forecast to be between US$13 billion and US$17.50 billion.
Wall Street had anticipated higher earnings for the next quarter, leading to a decline of over 4% in Amazon’s share price after the results.
Friday’s premarket indications pointed to a 3.2% drop to $184.10.