Instant Reaction: Amazon Gives Weak Forecast on Trade Concerns

<p>Amazon.com gave a weaker-than-expected forecast for operating profit in the current quarter, pointing toward tariffs and trade policies that may cause consumers to pull back on spending. The world&rsquo;s largest online retailer projected operating profit of $13 billion to $17.5 billion, compared with an average estimate of $17.8 billion. Sales will be $159 billion to $164 billion in the period ending in June, the company said Thursday in a statement. Analysts, on average, expected $161.4 billion.<br /><br />Amazon shares have fallen about 13% this year as Wall Street weighs the impact of President Donald Trump&rsquo;s tariffs on a retail operation that sources much of its goods from China. Investors are generally bullish on the company&rsquo;s efforts to become a major force in artificial intelligence, but there are concerns that Amazon&rsquo;s prodigious spending on data centers may not translate into meaningful sales growth any time soon.<br /><br />Amazon Web Services, the largest seller of rented computing power, reported first-quarter sales gained 17% to $29.3 billion, in line with analysts&rsquo; estimates. It was the unit&rsquo;s slowest growth in a year.<br />For instant reaction and analysis, hosts Carol Massar and Tim Stenovec speak with:</p> <ul> <li>Bloomberg Technology co-host Caroline Hyde</li> <li>Bloomberg Intelligence senior US e-commerce and retail analyst Poonam Goyal</li> </ul> <p>&nbsp;</p><p>See <a href="https://omnystudio.com/listener">omnystudio.com/listener</a> for privacy information.</p>