Despite a Beat in Earnings, Amazon Issued Light Guidance. Here’s What Analysts Had to Say

Following Amazon’s stronger-than-expected earnings report, Wall Street analysts largely maintained a positive outlook on the e-commerce giant’s future, even as the company offered a cautious forecast for the current quarter. Shares of Amazon slipped 1.5% during premarket trading on Friday, as investors reacted to the company's tempered guidance, which highlighted ongoing uncertainty related to President Donald Trump’s trade tariffs.

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For the second quarter, Amazon projected its operating income to range between $13 billion and $17.5 billion, a forecast that reflected concerns over potential supply chain disruptions and shifts in consumer behavior caused by trade tensions. Despite this cautious outlook, the company’s first-quarter performance surpassed analyst expectations, boosting investor confidence.

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Amazon posted earnings of $1.59 per share on revenue totaling $155.67 billion, beating the $1.36 per share and $155.04 billion in revenue analysts had anticipated, according to data compiled by LSEG. This solid performance in the first quarter reassured many analysts, who pointed to the company's resilience and long-term prospects.

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Several major Wall Street firms shared their updated assessments of Amazon:

Deutsche Bank reiterated its buy rating and slightly raised its price target from $206 to $210, implying a potential 10% gain from the current levels. The firm acknowledged that Amazon's earnings were in line with expectations and highlighted the strength of its logistics infrastructure, marketplace reach, and service offerings. However, it also noted that near-term earnings visibility remains limited due to macroeconomic uncertainties.

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Goldman Sachs maintained its buy recommendation with a $220 price target, reflecting a 16% upside. The firm expressed confidence in Amazon’s ability to navigate economic volatility, suggesting that past cycles show the company often emerges in a stronger position, both in consumer and enterprise markets.

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Citi echoed the bullish sentiment, keeping its buy rating and setting a $225 price target — about 18% above Thursday’s close. Analyst Ronald Josey highlighted that first-quarter revenue and operating income exceeded expectations and noted that second-quarter guidance appeared better than feared. Still, he cautioned that it is early to fully gauge the impact of tariffs, especially concerning inventory dynamics in the second half of the year.

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JPMorgan maintained its overweight rating and bumped up its price target from $220 to $225. The firm emphasized Amazon’s commitment to key strategic advantages — broad product selection, low pricing, and fast delivery — which it believes will help the company gain more market share during uncertain economic conditions.

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Bank of America also kept its buy rating and increased its target to $230, about 21% above Amazon’s recent closing price. Analyst Justin Post noted that while Amazon’s third-party seller revenue remains exposed to China and other international markets — and while AWS lost some ground to Microsoft Azure in the first quarter — the overall business has shown stability in 2025. He added that any positive developments in trade negotiations could further benefit the company.

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Barclays, while maintaining its overweight rating, lowered its price target to $240 from $265. Despite the cut, the new target still implies 26% upside. Barclays described the results as “solid,” especially given the current global trade environment, but warned that Amazon shares might remain volatile until there is more clarity on international trade policies.

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UBS held its buy rating but trimmed its price target from $253 to $249, suggesting a 31% potential gain. Analyst Stephen Ju remarked that recent downward revisions in estimates appear to be leveling off and that the current setup may present a tactical buying opportunity. He remains optimistic about Amazon’s long-term growth potential, citing increasing e-commerce adoption and the ongoing shift from on-premise infrastructure to cloud computing — both trends that continue to benefit Amazon and its cloud arm, AWS.

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Morgan Stanley stayed overweight on the stock with a $250 price target, also about 31% higher than the latest close. The firm noted that the first half of 2025 has been strong for Amazon, crediting the company’s proactive investments and operational execution amid uncertainty. Still, it pointed out that the financial impact of tariffs in the latter half of 2026 remains hard to predict, and any movement on trade deals could serve as the next major trigger for earnings revisions.

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In summary, although Amazon’s short-term guidance reflects caution due to trade tensions, its impressive first-quarter performance and long-term growth drivers continue to attract strong support from analysts. Wall Street largely believes that Amazon is well-equipped to weather macroeconomic headwinds and capitalize on future opportunities in both retail and cloud services.

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