Despite strong outward appearances, Amazon may have some turbulence in its future.
The Q1 report released by Amazon has left a mixed bag for investors to make sense of. On one hand, earnings were strong and beat Wall Street expectations by a healthy margin. On the other hand, the company warned that the Q2 bottom line will likely end up far below most analyst’s estimates. Amazon is very strong right now, but the company isn’t providing the best guidance to investors.
The retail and cloud-computing powerhouse reported earnings per share at $7.09 on Thursday. This was 50% higher than expectations put forward by analysts. The company reports that they expect earnings next quarter to come in below expectations. This would result in a negative impact on Amazon’s bottom line.
For investors, the disappointing Q2 forecast seems to have calmed their excitement over the excellent Q1 earnings report. After-hours trading saw the Amazon stock go up a modest $28.01 to $1930.26 per share. The stock closed regular trading up $0.50 to $1902.25. Amazon’s Q1 earnings were $59.7 billion, up from $51.04 billion last year.