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Amazon.com Inc. (AMZN) delivered strong Q1 2025 results, surpassing analyst expectations with $155.7 billion in revenue (a 9% year-over-year increase) and EPS of $1.59, compared to estimates of $155.04 billion and $1.36, respectively. Operating income rose to $18.4 billion from $15.3 billion in Q1 2024, and Q2 guidance projects net sales between $159 billion and $164 billion, reflecting 7% to 11% growth. Amazon Web Services (AWS) was a key driver, with $29.3 billion in net sales (up 17% year-over-year), improved margins, and a 20% increase in backlog to $189 billion. AWS client additions, including Adobe and Nasdaq, and anticipated AI-driven demand are expected to further boost profitability. Amazon also introduced eight new robots and advanced fulfillment centers, targeting $10 billion in annual cost savings and a 25% reduction in processing time. The company’s financial health remains robust, with a net margin of 10.65% and a debt-to-equity ratio of 0.46. Analysts have set an average 12-month price target of $248.78, with a high of $288.00, citing Amazon’s scale, innovation, and leadership in e-commerce and cloud computing as key growth drivers. CEO Andy Jassy emphasized investments in grocery, pharmacy, faster delivery, and AI, which analysts believe position Amazon to capitalize on emerging opportunities. Despite some concerns over tariff impacts and AWS exposure in China, Amazon gained 400 basis points of retail market share last quarter and continues to demonstrate resilience and long-term growth potential.
Source content provided by Benzinga.
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About AMZN

Amazon is the leading online retailer and marketplace for third party sellers. Retail related revenue represents approximately 75% of total, followed by Amazon Web Services' cloud computing, storage, database, and other offerings (15%), advertising ... Read more

Ways to trade options* on AMZN

Bullish Option Strategy: Long Calls

Traders buy a single call option on a stock or ETF. This strategy can benefit from a price increase while risking more capital than a spread.

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