Amazon(US:AMZN) Xin Lang Cai Jing·2025-05-02 03:04Core Viewpoint - Amazon's Q1 2025 financial results showed a net sales of $155.67 billion, a 9% year-over-year increase, and a net profit of $17.13 billion, reflecting a 64% growth compared to the previous year. However, revenue fell short of Wall Street expectations, and the outlook for Q2 revenue was also below expectations [1] Financial Performance - Q1 net sales reached $155.67 billion, up 9% year-over-year, and 10% when excluding currency fluctuations [1] - Net profit for Q1 was $17.13 billion, a 64% increase from the previous year [1] - Diluted earnings per share were $1.59, compared to $0.98 in the same period last year, exceeding analyst expectations [1] AWS and AI Developments - The introduction of P5 GPU instances for AI workloads has been ongoing, with AI business revenue reaching several billion dollars and a triple-digit growth rate year-over-year [2] - AWS backlog orders amounted to $189 billion, a 20% year-over-year increase, with an average contract duration of 4.1 years [16] Supply Chain and Cost Management - Supply chain issues are expected to improve over time, despite current demand being very high [3] - The company is focused on maintaining low prices for consumers and ensuring a diverse seller base to mitigate potential impacts from tariffs [5][14] Strategic Focus - The management emphasizes the importance of providing a wide range of product choices and maintaining low prices for consumers, especially in uncertain global trade environments [3][5] - The company is actively managing inventory levels to balance operational efficiency and meet customer demand during peak sales periods [14] AI and Cloud Migration Trends - Companies are increasingly recognizing the need to migrate their infrastructure to the cloud, driven by the potential benefits of AI and cloud computing [17] - The AI sector is experiencing unique growth cycles, with significant projects being run on AWS, indicating a strong demand for cloud services [8] Alexa Product Development - The new Alexa+ product is designed to perform more complex tasks and has received positive feedback from users, with over 100,000 users already engaged [11][12] - The company aims to enhance user experience by allowing more natural interactions with Alexa, moving beyond simple command responses [12][13]