Amazon(US:AMZN) Huachuang Securities·2025-05-05 13:32Investment Rating - The report assigns a positive investment rating to Amazon, indicating expectations of significant outperformance relative to benchmark indices in the coming months [2][45]. Core Insights - Amazon's Q1 2025 revenue reached $155.67 billion, a year-on-year increase of 9%, exceeding previous sales forecasts [3][8]. - The operating profit for Q1 2025 was $18.4 billion, reflecting a 20% increase year-on-year, also surpassing prior expectations [3][8]. - Net profit for the quarter was $17.1 billion, marking a substantial year-on-year growth of 64% [9]. - Capital expenditures for Q1 2025 totaled $24.3 billion, primarily aimed at enhancing technology infrastructure, particularly for AWS and AI services [4][13]. - The AI cloud business is experiencing rapid growth, with annual revenue run rates reaching billions and maintaining triple-digit year-on-year growth [4][18]. - For Q2 2025, Amazon projects revenue between $159 billion and $164 billion, representing a year-on-year growth of 7% to 11% [4][20]. Revenue Breakdown - North America segment revenue was $92.89 billion, up 8% year-on-year, contributing 60% to total revenue [3][14]. - International segment revenue was $33.51 billion, a 5% increase year-on-year, accounting for 21% of total revenue [3][16]. - AWS revenue reached $29.27 billion, a 17% increase year-on-year, contributing 19% to total revenue [3][18]. - Amazon Ads revenue for Q1 2025 was $13.9 billion, reflecting a 19% year-on-year growth [17]. Performance Guidance - Amazon anticipates Q2 2025 operating profit to be between $13 billion and $17.5 billion, with potential impacts from stock-based compensation and Kuiper launch costs [4][20]. - The company expects to continue addressing supply chain issues and cloud capacity constraints as the year progresses [21][23].