Amazon cloud growth lags, sees quarterly revenue above estimates
Amazon.com reported first-quarter growth in its cloud unit that missed analyst estimates on Thursday, sending shares lower, despite forecasting optimistic companywide sales in the current period.
Amazon forecast second-quarter sales largely above estimates, a reassuring sign to investors that the e-commerce company would navigate tariff-related uncertainty.
Amazon Web Services, the company's cloud unit, is showing signs of weakness, with its 16.9% increase in first-quarter revenue to $29.27 billion missing expectations for 17.4% growth and $30.9 billion in sales.
Rival Microsoft, opens new tab, by comparison, reported on Wednesday it had exceeded estimates for its Azure cloud unit.
Amazon reported total revenue of $155.7 billion for the first quarter ended March 31, compared with analysts' estimate of $155.04 billion, according to data compiled by LSEG.
The company expects net sales between $159 billion and $164 billion for the second quarter, compared with analysts' average estimate of $160.91 billion, according to data compiled by LSEG.
High tariffs imposed by U.S. President Donald Trump on goods imported from China have cast uncertainty on retailers such as Amazon. Some sellers, for instance, have said they plan to sit out the company's heavily promoted Prime Day sales event in July, Reuters reported.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Euronews
2 hours ago
- Euronews
How can the EU respond to companies moving their production elsewhere?
German BSH Domestic Appliances group, which owns the Siemens and Bosch brands, has announced the forthcoming closure of a factory in Esquíroz in the north of Spain. More than 650 local jobs are likely to be lost, and production could be relocated to Poland or Turkey. "The situation is really very worrying. This was a company that had proved to be sustainable, a company that had a product that provided services to the rest of Europe and also to Spain, because 80% of the products that came out of this company were then marketed in Spain," Spanish MEP Estrella Galán said. "And now the company has decided to close because of relocation," she added. This is not an isolated case. Relocations are also under way at Audi, Volkswagen and ArcelorMittal. Some MEPs would like the European Parliament to take action to combat deindustrialisation and support the re-industrialisation of Europe, at a time when geopolitical uncertainties are undermining businesses. "We have political instability, we have high energy prices, we have economic uncertainty, we have Donald Trump's tariff war," Oihane Agirregoitia Martínez, another Spanish MEP for Renew Europe, told Euronews. "In this case, we have a lack of strategic autonomy. These companies are looking for lower labour costs, they are looking for access to raw materials", Agirregoitia Martínez explained. She recommends simplifying the regulatory and tax framework to support production, innovation and competitiveness in Europe. For her part, Galán is calling for the 25-year-old European directive on collective redundancies to be updated to bring it into line with the "new realities of the labour market". "Within the European Union, we cannot compete between states on the basis of the wage levels that exist in one member state or another," she told Euronews. "It is therefore necessary to reform this directive on collective redundancies and prevent social dumping from being a threat to all workers in the European Union", she adds. Between 2018 and 2020, 72% of French companies that relocated did so in Europe, according to the French national statistics institute (INSEE). The 21-year-old gunman who went to his former school in Graz on Tuesday and shot 10 people dead and injured a further 11 had carefully planned his rampage in advance. That's according to a statement by the public prosecutor's office and the police at a press conference on Thursday. During a search of his house, investigators found a non-functional pipe bomb, notes and plans. According to police, the pipe bomb contained all the components. His notes express regret that he did not have time to properly finalise his plans. A farewell letter was also among the items found, but according to investigators, it does not provide any further information about the perpetrator's motive and reads more like an apology to his family. Investigators also revealed that the young man, who lived with his mother, had lived a secluded life. He was reportedly introverted, withdrew mainly into the virtual world where his main social contact came from and played first-person shooter games. Three years ago, he dropped out of school without graduating. The 21-year-old had no criminal record. Michael Lohnegger, the head of the Styrian state police, explained that the perpetrator entered the school on Tuesday at 9:43 am. He was carrying a rucksack containing a Glock 19 pistol, a sawn-off double-barrelled shotgun and ammunition. He went to the school toilet on the third floor, put on a gun belt, shooting glasses and a headset. There were 400 pupils in the school at the time. The gunman, then heavily armed, went to the second floor and shot indiscriminately at people there and at 10:07 am went back to the third floor toilet where he shot himself. The first police patrol arrived at the school at 10:06 am, by which time the rampage was over and the gunman already dead. Investigators assume that the 21-year-old did not know the young people he shot, although the teacher who was killed had taught at the school at the time the gunman was a pupil there. The police investigation is still ongoing, with a laptop and a USB stick still to be analysed. So far, there are no concrete clues as to the motive for the shooting.
AFP
4 hours ago
- AFP
Posts falsely claim Namibia has announced ban on US gas and oil exploration
'Namibia cancelled contract with US from Mining their OIL & GAS,' reads an X post published on May 30, 2025. With more than 16,000 likes, the post adds: 'They ended the Oil & Gas contract with the US and told the US Government to immediately stop all Mining Operations in Namibia as Namibia ventures into State-owned mining operations.' Image Screenshot of the false X post, published on May 28, 2025 The post includes side-by-side photos of Namibia's President Netumbo Nandi-Ndaitwah and US President Donald Trump. Similar posts were shared thousands of times more on X and other platforms, including Facebook, TikTok and blogs. Nandi-Ndaitwah, who was elected in March, placed the country's oil and gas industries under direct presidential control the day after her inauguration. They previously fell under the Ministry of Energy and Mines (archived here). However, the government has not announced the cancellation of any energy contracts with the United States. No announcements A keyword search for 'Namibia cancels oil and gas with the US' turned up more posts repeating the false claim, as well as articles debunking it (archived here). The posts began circulating at about the same time as claims debunked by AFP Fact Check alleging that Namibia had announced the deportation of 500 Americans. As reported by AFP in April, Nandi-Ndatiwah explained that the oil and gas sector had the potential to transform Namibia's economy within the next five years by securing energy supplies and creating jobs (archived here). 'Mining contributes 12 percent to our gross domestic product and over 50 percent of our foreign exchange earnings. Regrettably, this figure does not reflect the true potential of mining and our mineral resources,' she was quoted as saying. On May 30, 2025, her presidency responded to the viral posts by labelling them 'fake news' (archived here). Namibia's presidency reiterated this to AFP Fact Check on June 4, 2025. 'The Namibian government has not at any point cancelled any contracts with investors from the United States in the mining, oil and gas sectors,' said press secretary Alfredo Hengari. He added that 'it is not the policy of the government to cancel contracts that are binding'. A US State Department spokesperson told AFP Fact Check on June 11, 2025: 'The online claims that Namibia has cut off the United States from mining and gas are false.' Foreign investment Contrary to the claim, Namibia has become a global exploration hotspot with several international gas and oil companies actively exploring its coasts in recent years (archived here). At the start of 2025, American firm Chevron announced that it had not found commercially viable gas in Namibia's Orange Basin By April, however, the company confirmed it would continue exploration in the Walvis Basin in 2026 or 2027, where firms including TotalEnergies, Shell, and Galp have made discoveries. Similarly, British multinational Shell deemed its Namibia oil discoveries uncommercial due to high gas levels in January. However, France's TotalEnergies believes it can handle these geological challenges, but its investment decision hinges on maintaining production costs below $20 per barrel (archived here). Another American corporation, ExxonMobil, is investigating (here and here) the country's potential in the Namibe Basin (archived here and here). The state itself, through the National Petroleum Corporation of Namibia (NAMCOR), holds a 10 percent stake in its exploration partnership with TotalEnergies (50.5 percent), QatarEnergy (30 percent) and Impact Oil and Gas (9.5 percent) (archived here). As a top uranium producer, Namibia also announced in April 2025 that it will launch talks this year on its first nuclear energy plant, seeking to exploit its rich natural wealth to transform its economy (archived here).
Fashion Network
6 hours ago
- Fashion Network
Archies plans global expansion, focus on children's category
Gifting brand Archies plans strategic international expansion and a renewed focus on the children's category as the business aims to enter a new phase of growth. The business has recently launched operations in the UAE and plans to expand across Kuwait, Saudi Arabia, Bahrain, Qatar, and Oman by August this year. Keen to leverage nostalgia among the Indian diaspora abroad, Archies plans to reach shoppers in new global markets, India Retailing reported. The brand is also eyeing Southeast Asia for retail expansion, with a presence in five countries expected by October, and has signed agreements in Sri Lanka. Expansion into the US, UK, and Australia is also on the cards, supported by both online and offline retail partnerships including general trade shops, large-format retailers, and marketplaces such as Amazon. Archies' executive director Varun Moolchandani told India Retailing that the children's segment is also a key focus area for growth. Archies will soon launch dedicated large-format kids' stores with play zones and birthday party spaces, alongside new home décor collections influenced by Korean aesthetics. Domestically, the Delhi-based company plans to open 25 to 30 new stores this year, concentrating on North India. The business will also introduce Archie's Express stores to serve value-conscious customers with fast-moving, affordable products. With its turnover crossing the Rs 80 crore mark in the 2024 financial year and strong digital and retail momentum, Archies is positioning itself as a global player while evolving its offerings for a new generation of consumers.
