🟡 Amazon Q1 2025 – $155B in Sales, AI Momentum, and the Kuiper Countdown

🎧 Podcast by Men’s Hobby – Know What You Are Investing

Earning Release : May 1st,2025

In this episode, we decode Amazon’s Q1 2025 earnings—a quarter marked by stellar sales, massive AI investment, faster-than-ever Prime delivery, and a literal launch into space. Here’s what you’ll discover:

• 💰 Net Sales: $155.7B (Up 10% YoY, beat high-end guidance)

• 💼 Operating Income: $18.4B (Up 20%)

• 💸 Net Income: $17.1B (Includes $3.3B gain from Anthropic investment)

• 📈 TTM Sales: $650.3B | TTM Net Income: $65.9B (Up 75%)

• 🔁 Free Cash Flow: $25.9B (Down 48% due to CapEx growth)

Segment Highlights:

• 🇺🇸 North America: $92.9B Sales | $5.8B Op. Income (+17%)

• 🌍 International: $33.5B Sales | $1.0B Op. Income (+12%)

• ☁️ AWS: $29.3B Sales (+17%) | $11.5B Op. Income (+23%)

• 💻 AWS Run Rate: $117B+

• 🔥 AI Revenue: Triple-digit YoY growth

• 🧠 Trainium 2 chip: 30–40% better price-performance vs GPU-based instances

• 🧱 Amazon Bedrock: Hosts Claude 3.7, Llama 4, Nova foundation models

• 📣 New AI Tools:

  • Nova Sonic – speech-to-speech model

  • Nova Act – browser action AI

  • Amazon Q – developer assistant w/ CLI support

CEO Andy Jassy signals Amazon’s ambition to lead at every level of the AI stack—from silicon to cloud APIs to consumer tools like Alexa+.

• 🚀 Fastest delivery quarter ever for Prime

• 🏠 Regionalized inventory to stock closer to customers

• 🤖 Robotics, automation, rural delivery expansion

• 🛍️ New luxury retail partnerships (e.g., Saks)

• 💵 $500M+ in global customer savings from deals

• 🔄 61% of units sold by 3rd-party sellers

• 📦 Prime Day returns in July

• 📊 Ad revenue: $13.9B (+19% YoY)

• 🧠 Full-funnel adoption + AI-enhanced targeting

• 👥 275M+ ad-supported U.S. audience

Ads are now a profit engine for both North America and International segments.

• 🛰️ First Project Kuiper satellite launched in Q1

• 🌐 Commercial internet service expected later in 2025

• 🎥 New investments in entertainment, including James Bond franchise

• 🏗️ Massive CapEx to support cloud, AI, and fulfillment scale

• 🧮 Belief: Most on-prem IT spend will shift to cloud in 10–20 years

• Amazon anticipates uncertainty from new tariffs

• No major pricing changes or demand issues seen yet

• Mitigation tactics:

  • Broad selection across price tiers

  • Global seller diversity (2M+ sellers)

  • Forward inventory buys

  • Diversifying AWS/device production

• ✨ Focus on controllables: prices, selection, convenience

• ⚠️ Power and chip supply constraints affecting AWS—but relief expected H2 2025

• 📉 Q2 Sales Guide: $159B–$164B (with FX headwind)

• 🧾 Q2 Operating Income: $13B–$17.5B

• FX & global macro conditions

• Tariffs & trade disruptions

• Chip/power supply for AWS

• Fulfillment optimization risks

• Global expansion, legal/regulatory threats

• AI competition and execution

Amazon is no longer just the “Everything Store.”
It’s a global cloud platform, custom chip maker, AI model lau