Amazon CEO Andy Jassy expressed cautious optimism about the company’s ability to weather the current tariff uncertainty, despite concerns about its impact on business. During the Q1 earnings call, Jassy noted that Amazon’s vast selection of hundreds of millions of unique SKUs and its role as a primary retailer for everyday essentials position it well to navigate challenging economic conditions. “People are buying a lot of their everyday essentials at Amazon,” Jassy told analysts. The company’s Q1 earnings beat expectations, although its guidance for Q2 was lower than anticipated, citing uncertainty around tariffs and consumer demand. Amazon’s CFO Brian Olsavsky mentioned that the uncertainty led to a wider range in the company’s operating income guidance. The term “uncertainty” was used 11 times during the call, highlighting the prevailing ambiguity. Despite initial concerns following the earnings report, Amazon’s stock rebounded, gaining over 1% to $192.85 in premarket trading. The company’s cloud business, Amazon Web Services (AWS), reported revenue growth slightly below estimates. Analysts remain largely positive on Amazon, with some adjusting their price targets. Bernstein analyst Mark Shmulik maintained an outperform call, lowering his target to $230 from $235, while Stifel analyst Mark Kelley reiterated a buy call with a revised target of $245. Both analysts noted Amazon’s resilience in the face of tariff-related challenges and the positive outlook for AWS.
