Amazon reported quarterly earnings that exceeded Wall Street expectations, but its forecast for the current quarter fell short of market projections, leading to a slight dip in its stock price after hours.
On Thursday, Amazon shares fell 1.50% to $235.25 in after-hours trading on the New York Stock Exchange, following a 1.13% gain during the regular session. The company released its earnings report immediately after the market closed.
For the quarter, Amazon posted revenue of $187.7 billion, surpassing analysts’ estimates of $187.3 billion. Earnings per share reached $1.86, well above the projected $1.50.
Amazon Web Services (AWS), the company’s cloud computing division, generated $28.8 billion in revenue, which aligns with market expectations.
Overall, Amazon’s quarterly performance exceeded forecasts across the board.
However, its outlook for the current quarter disappointed investors. The company projected revenue between $151 billion and $155 billion, falling short of the median market expectation of $158 billion.
Amazon attributed the weaker forecast to currency exchange rate fluctuations. The U.S. dollar has strengthened consistently since President Trump took office, which the company expects will negatively impact revenue.
This cautious outlook appears to be weighing on Amazon’s stock, contributing to its roughly 1% decline in after-hours trading.