AMZN Stock Slips After Hours As High Capex Worries Overshadow Q1 Beat

Shares of Amazon.com Inc (AMZN) fell 1.6% after hours on Wednesday despite the company reporting first-quarter earnings above Wall Street expectations, as concerns over high capital expenditures for AI and cloud infrastructure continue to drag down investor sentiment.

The company reported total net sales of $181.52 billion, compared to an analyst estimate of $177.17 billion, while earnings per diluted share came in at $2.78, above an estimated $1.64, thanks to growth in the firm’s Amazon Web Services segment. The firm’s EPS has beaten estimates for 13 consecutive quarters now, while revenue has surpassed estimates for seven.

For the upcoming quarter (Q2), Amazon expects net sales to grow between 16% and 19% year-over-year to $194 billion and $199 billion, above an estimated $188.86 billion, including an unfavorable impact of about 10 basis points from foreign exchange rates.

Operating income for Q2 is expected to be between $20 billion and $24 billion. 

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