Amazon issued strong Q1 results but a cautious Q2 forecast
Amazon.com Inc (NASDAQ:AMZN) is up 1.4% before the bell, reversing its earlier losses after issuing a wider-than-expected second-quarter operating income forecast that missed estimates. The e-commerce giant cited tariff-related uncertainty for the broad guidance range, though CEO Andy Jassy said he’s optimistic Amazon can come out stronger -- noting some sellers may hold prices steady, giving Amazon a potential edge. The company also reported a first-quarter beat on both the top and bottom lines.
Year-to-date, AMZN is down 13.3%, and April marked its third-straight monthly dip -- though last month’s 3.1% pullback was far milder than the double-digit drops seen in March and February. The shares are looking to grapple with their 40-day moving average, after briefly reclaiming the trendline on Wednesday for the first time since early February.
Analysts were quick to respond, though most reactions were fairly muted. At least 15 brokerages slashed their price targets on AMZN following the report. The deepest cut came from Susquehanna, with a price-target cut to $225 from $275. Still, many revised targets remain near or above $230. Coming into today, Amazon’s average 12-month target price sat at $243.02 -- a 27.8% premium to last night’s close -- suggesting this round of downward revisions was likely overdue.