Amazon Stock Slides After-Hours As Trump Tariff Concerns Cloud Q2 Outlook: Retail Traders Cheer Earnings Beat

Amazon.com (AMZN) flagged disruption and uncertainty from tariffs in the near term in its quarterly report on Thursday, dragging shares down 3.2% in extended trading.

The e-commerce major reported healthy first-quarter results, although growth in its widely watched cloud unit was the lowest in a year, and guided for a weak operating profit for the current quarter.

"Obviously, none of us knows exactly where tariffs will settle or when," CEO Andy Jassy said on the analyst call.

"We haven't seen any attenuation of demand yet. To some extent, we've seen some heightened buying in certain categories that may indicate stocking up in advance of any potential tariff impact."

The company said in a statement that its outlook may be "materially affected by many factors," such as "tariff and trade policies," currency fluctuations, and "recessionary fears," among other factors.

On Stocktwits, retail sentiment rose to 'extremely bullish', and Amazon was the second-highest trending ticker as of late Thursday.

Amazon projected operating profit of $13 billion to $17.5 billion in the quarter ending June, compared with Bloomberg's average estimate of $17.8 billion.

Revenue will be $159 billion to $164 billion, compared to $161.4 billion.

For its first quarter, revenue rose 9% to $155.7 billion, beating an estimated $155.2 billion. Operating income of $18.4 billion also exceeded the expectation of $17.5 billion.

Revenue from its cloud computing division, Amazon Web Services, grew 17%, which aligned with expectations. However, the pace of growth was the lowest in a year and paled compared to rival Microsoft Azure's (MSFT) better-than-expected 33% growth in the same period.

Several users on Stocktwits said that Amazon delivered a strong quarter, and the share move was an overreaction.

As of its last closing price, Amazon stock is down 13.3% this year.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

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