Bloomberg Intelligence Amazon Falls as Profit Outlook, Cloud Growth Spook Investors
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Aug 1, 2025 Poonam Goyal is a Senior U.S. E-Commerce and Retail Analyst at Bloomberg Intelligence, and Angelo Zino is a Senior VP and Equity Analyst at CFRA Research. They dive into Amazon's surprising stock declines fueled by disappointing profit forecasts and challenges in its AWS cloud performance. The duo contrasts Amazon’s retail growth with its lackluster cloud margins, discussing competitive pressures from rivals like Microsoft. They also explore how shifting consumer behavior might impact the retail landscape during the back-to-school season.
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Amazon's Mixed Earnings Impact
- Amazon's retail sales grew double digits driven by value-conscious shoppers.
- However, AWS cloud revenue and margins disappointed, dragging the stock down sharply.
Amazon's Tariff Strategy
- Amazon's buying power helps shield it from full tariff price increases.
- It will absorb some costs but keep essential prices stable to maintain shopper value.
Tariff Uncertainty and Supply Shifts
- Tariff changes remain uncertain, with China's 90-day pause ongoing.
- Increased tariffs in Vietnam, India, and other Asian countries reflect shifted supply chains from China.