Amazon CEO Andy Jassy said President Donald Trump's sweeping tariffs are starting to be reflected in the price of some items, as sellers weigh how to absorb the shock of the added costs.Amazon and many of its third-party merchants pre-purchased inventory to try to get ahead of the tariffs and keep prices low for customers, but most of that supply ran out last fall, Jassy said in a Tuesday interview with CNBC's Becky Quick at the World Economic Forum in Davos, Switzerland. "So you start to see some of the ta ...

Core Viewpoint - Amazon's upcoming earnings report for Q1 2025 is anticipated to reflect consumer resilience amid the challenges posed by tariffs from the Trump administration, with analysts projecting earnings-per-share of $1.36 on revenue of $155 billion, compared to $0.98 per share on $143 billion in the same quarter last year [1][2][3]. Group 1: Earnings Expectations - Analysts estimate Amazon's earnings-per-share will be $1.36 on revenue of $155 billion, indicating a potential growth despite economic challenges [2]. - In the first quarter of the previous year, Amazon reported earnings of $0.98 per share on sales of $143 billion, highlighting a year-over-year comparison [2]. Group 2: Market Context - Amazon's stock price has decreased by 17% this year due to concerns that consumer spending may decline in response to tariffs, particularly as many products are shipped from China facing a 145% tariff [3]. - The company is expected to report its slowest revenue growth rate since 2022, coinciding with a reported contraction of the US economy at a 0.3% annualized pace in Q1 [3]. Group 3: Industry Impact - The earnings report is significant for the broader tech sector, as companies like Meta and Microsoft have reported strong earnings despite tariff uncertainties, indicating varying levels of exposure to import duties [4]. - UBS analysts noted that at least 50% of items sold on Amazon are subject to tariffs, which could lead to increased prices and affect consumer spending decisions [5]. Group 4: Company Response - Amazon's CEO, Andy Jassy, stated that the company has not observed a decline in consumer demand and aims to keep prices low, although some third-party sellers may need to pass on tariff costs to consumers [6]. - Following reports of Amazon's plans to itemize tariff-related price increases, the company denied these claims, stating that such a plan was never approved [7][8].