By coinnews 
00:00 Speaker A
Let’s get to earnings. Now we have Amazon coming out in just the past few moments, and um really what stands out to me, let’s just hop right to it, is a second quarter operating income forecast of 13 billion to 17 and a half billion dollars. Now, two things there. It’s short of estimates is number one. The uh average analyst estimate for operating income was 17.8 billion dollars for that second quarter. And the other thing that stands out to me is how wide that range is. 13 billion to 17 and a half billion dollars, an unusually wide range, which reflects the unusual and uncertain operating environment under which Amazon is operating right now. And so many other companies as well, we’ve talked about the effect that tariffs are having both directly on the company and indirectly on the company on the um sellers that operate on its platform and it gives a lot of services to them. So all of that having an effect. So that’s the forecast, getting that out of the way. Now let’s talk about the numbers for the last quarter. Those numbers looking pretty good on balance here. First quarter earnings per share of $4.59, that’s versus the dollar 36 that analysts have been looking for. AWS net sales, 29.27 billion dollars. That is just shy of what analysts had been anticipating. Um and so uh that also could be a focus for investors here. Um but uh Josh Shafer here with me on set, and overall, uh the numbers last quarter looking good, but that outlook is a bit of a punch.
03:08 Josh Shafer
Yeah, absolutely. Julian, you mentioned it. It’s really the range there, right? Thinking about the fact of swinging from operating income of anywhere between 13 billion to 17 and a half billion, we’re playing with very large numbers here. That is a significant amount of money that we were talking about that is up in the air. So basically sort of feeding into what I think a lot of the investor fear has been around Amazon, which is an extended exposure to China, extended exposure to tariffs, and what does that actually mean for the company? And perhaps they’re saying a little bit right now, they’re not quite sure yet, right? And I think that feeds into the moment a little bit. Other thing I wanted to point out here when you were highlighting second quarter net sales, that’s also a rather wide range-ish relatively. 159 billion to 164 billion. The estimate was for 161, but again, just a decent sized range there when we’re starting to play with high numbers. I think it’s going to be interesting when we get to the call to really sort of hear a little bit more commentary on exactly what they’re factoring in in terms of the high end and the low end of that operating income, like is the low end full China tariffs, is that sort of the fear here? How do you sort of assess that part of it? But again, shares are down about 5% right now and I think that’s really probably just a key driver.
05:15 Speaker A
Yeah, I’m looking at the uh release now, which is just coming through and and doesn’t have a lot of commentary around that guidance. Presumably we’ll get that on the call here. Uh but the company does have a long list of what is going into um the financial guidance. They do say it is subject to substantial uncertainty. Says the following forward-looking statements reflect Amazon’s expectations as of May 1st, 2025, and are subject to substantial uncertainty. Our results, they say are inherently unpredictable, could be materially affected by many factors. Foreign exchange rate fluctuations, changes in global economic and geopolitical conditions, tariff and trade policies, and customer customer demand and spending, including the impact of recessionary fears, inflation, interest rates, regional labor market constraints, world events, the rate of growth of the internet, etc. But you get the idea here that there is this um weight, this cloud hanging over them that includes just a lot of X factors right now.
06:51 Josh Shafer
And it’s interesting, especially with a company like Amazon, Julie, right? Because they do have so many different parts of this business. They’re talking about recessionary fears and consumer spending. Obviously, Amazon sells stuff online to a lot of us, right? So that’s part of the story always with Amazon. But then it’s also the B2B part of Amazon’s business, AWS, and how does cloud spending play out if we do get some level of an economic slowdown? How does ad spending play out if we get some level of economic? Every little piece of their business is yes, tied to the tariff story perhaps, but also just tied to the economic story that’s built off the tariff story, and there’s so many different offshoots that I’m sort of curious what the focus is going to be from investors as we move out of the call, right? What part of the business matters the most right now and are we most concerned about, or could be a driver?
08:04 Speaker A
Yeah.
08:04 Josh Shafer
Yeah.
08:07 Speaker A
It’s a great question.