On Thursday, Amazon.com, Inc. AMZN CEO Andy Jassy predicted a potential shift in consumer behavior reminiscent of the pandemic era while asserting that the e-commerce giant is doubling down on affordability.
What Happened: During Amazon’s first-quarter earnings call, Jassy addressed questions about Amazon’s medium-term strategy amid trade tensions and possible tariff hikes.
“It’s hard to tell what’s gonna happen with tariffs right now,” he stated, adding, “There’s maybe never been a more important time in recent memory than than, you know, trying to keep prices low, which we’re heads down, pretty maniacally focused on.”
Jassy highlighted that Amazon is taking several proactive steps, including purchasing more inventory in advance for products it sells directly and encouraging third-party sellers to do the same, to shield customers from potential price increases.
He also pointed out that during the pandemic, customer preferences changed in ways no one expected, and something similar could happen again.
Why It’s Important: Amazon reported first-quarter net sales of $155.7 billion, marking a 9% increase from the same period last year and surpassing Wall Street’s consensus estimate of $155.04 billion.
For the second quarter, the company expects net sales to range between $159 billion and $164 billion, representing year-over-year growth of 7% to 11%. Analysts, on average, are projecting second-quarter sales of $160.91 billion.
Earlier this week, it was reported that some Amazon sellers are opting out of Prime Day 2025 or reducing their discounts due to high tariffs imposed by President Donald Trump on goods imported from China.
Price Action: Amazon (AMZN) shares rose 3.13% during Thursday’s regular session, closing at $90.20. However, the stock fell 3.21% in after-hours trading, reaching $184.10, according to Benzinga Pro.
Amazon holds a robust growth score of 94.08% in the Benzinga Edge Stock Rankings. Click here to see how it stacks up against other leading e-commerce competitors.
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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
