Will Strong AWS Performance Boost Amazon's Q1 Earnings Report?
Amazon 's AMZN first-quarter 2025 results, scheduled to be released on May 1, are likely to reflect gains from its strengthening cloud service offerings.
Amazon Web Services ('AWS') remains the crown jewel in Amazon's portfolio, with the Zacks Consensus Estimate projecting AWS sales of $29.31 billion for first-quarter 2025, indicating robust 17.1% year-over-year growth.
See the Zacks Earnings Calendar to stay ahead of market-making news.
This performance continues to solidify AWS' position as the market leader, competing effectively against Microsoft MSFT Azure, Alphabet GOOGL -owned Google Cloud, and Oracle ORCL. Recent industry data confirms AWS' dominant market position, with the three top cloud providers for a whopping 68% of the global cloud market in the fourth quarter of 2024, according to new data from IT market research firm Synergy.
AWS strengthened its global infrastructure in the first quarter with the launch of new regions in Thailand and Mexico, representing multi-billion-dollar investments that are expected to contribute significantly to each country's GDP. The Mexico (Central) Region launch marked a $5 billion investment commitment over 15 years, while the Thailand Region similarly demonstrated Amazon's confidence in emerging markets.
Click here to know how the company's overall first-quarter performance is likely to have been.
Strategic Collaborations of AWS Strengthen's AMZN's Position in Q1
The first quarter saw AWS announce several high-profile strategic collaborations. Notable partnerships include the multi-year agreement with Fitch Group to leverage Amazon Q Developer generative AI technology, which reportedly improved developer productivity by approximately 20%. AWS also expanded its long-standing relationship with Pearson to accelerate AI-powered learning solutions that will serve millions of users globally.
Other significant partnerships formed during the quarter include agreements with Proximus Group to provide global cloud infrastructure, Montefiore Health System for healthcare innovation, and Mitsubishi Electric for data center solutions and digital transformation initiatives. These partnerships demonstrate AWS' versatility across financial services, education, telecommunications, healthcare, and manufacturing sectors.
Amazon's AI Integration Drives Growth in Q1
AWS continued to integrate AI capabilities throughout its service offerings in the first quarter. The quarter saw Amazon Ads bringing generative AI capabilities to Amazon Marketing Cloud with a new SQL Generator, enabling advertisers to develop insights faster using natural language. The company also made significant strides in implementing generative AI through Amazon Bedrock across various industries.
The automotive sector emerged as a particularly strong growth area, with Honda leveraging AWS for transitioning to software-defined vehicles and improving EV charging experiences with generative AI. Similar collaborations with HERE Technologies and Valeo further demonstrate AWS' expanding footprint in the automotive space.
Investment Perspective
As Amazon approaches its first-quarter 2025 earnings report, AWS' performance shows promising indicators with strong revenue growth projections and strategic expansion across multiple fronts. The continued investment in AI capabilities, strategic partnerships spanning diverse industries, and geographic expansion all position AWS to maintain its cloud dominance.
However, investors should consider that while AWS remains a powerful growth engine, market expectations for continued cloud acceleration are already high. The substantial investments in new geographic regions and AI development may pressure near-term margins. These factors suggest that while AWS performance appears strong, investors might consider waiting for more clarity on profitability metrics and the return on these investments before increasing positions ahead of this Zacks Rank #3 (Hold) company's earnings report. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Zacks Names #1 Semiconductor Stock
It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.
With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.
See This Stock Now for Free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Amazon.com, Inc. (AMZN): Free Stock Analysis Report
Microsoft Corporation (MSFT): Free Stock Analysis Report
Oracle Corporation (ORCL): Free Stock Analysis Report
Alphabet Inc. (GOOGL): Free Stock Analysis Report
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Global News
8 hours ago
- Global News
12 Bluetooth speakers that'll get your summer party started
The Curator independently decides what topics and products we feature. When you purchase an item through our links, we may earn a commission. Promotions and products are subject to availability and retailer terms. Tired of listening to distorted audio through the tiny, tinny speaker on your phone? Then it's probably time to invest in a portable Bluetooth speaker. We've rounded up a dozen favourites, from JBL's wee, padlock-shaped Clip 5—perfect for clipping to purses—to Bose's feature-packed SoundLink Max, which boasts beautiful sound and maximum durability. Whether you're looking for a multi-speaker music system for your next outdoor party or just something for listening to podcasts, you'll find it in our curated list. Best affordable Tribit StormBox 2 Working on a budget? It'll be hard to beat the StormBox 2. For just 90 bucks you get 34W of power, up to 24 hours of playtime per charge, IPX7 waterproofing, and a range of up to 50m for Bluetooth connectivity. Plus, the free Tribit app lets you tinker with your tunes, applying six equalization presets designed for a variety of listening milieus. $89.99 on Amazon Story continues below advertisement Best aesthetic Bang & Olufsen Beosound A1 We think this small, simple puck—available in six hues and sporting a built-in leather tote cord— is the prettiest portable speaker around. It looks great anywhere, from living rooms to hot tubs. And it's waterproof, so no worries if it falls in! Bang & Olufsen's legendary engineering is evident via the 13cm driver that delivers warm bass and a clear high range. And you can enjoy your music for an incredible 42 hours per charge at low volume. $358.75 on Amazon Best for parties Soundcore Boom 2 It's a bit industrial in design, but the Boom 2 is actually a wild party machine. It pumps out powerful bass (up to 80W), and has a built-in passive radiator to deliver colourful light shows. It can also be synced with more than 100 additional speakers to ensure the music reaches every nook and cranny of your jamboree. Plus, it floats! $179.99 on Amazon Story continues below advertisement Best compact JBL Flip 7 Compact and cute, JBL's latest Flip is available in nine colours, from a pretty coral pink to combat camouflage. It delivers clear, non-tinny highs and robust lows, using AI to analyze your music and apply equalization in real time to prevent distortion. And Auracast lets you connect with other nearby JBL speakers to level up your soirée. $169.98 on Amazon (was $189.98) $169.99 at Best Buy Canada Best portable JBL Clip 5 If portability is your primary shopping criteria, JBL's Clip 5 should be at the top of your list. It's not much bigger than a phone. And its clever padlock-style design—available in 16 colour schemes—lets you clip it to just about anything, from handlebars to purses. The small size means just 12 hours of battery life at normal volume, but the Playtime Boost button adjusts settings to give you an extra three hours. $99.98 on Amazon $99.99 at Best Buy Canada Story continues below advertisement Best design Beats Pill Apple's portable speaker (which also works with Android devices) is sleek, simple, and sounds great. The pill-shaped shell—available in red, black, and champagne gold—looks great in any setting, and sports just four cleverly configured buttons that make it easy to control playback, adjust volume, take calls, and activate your voice assistant. Plus, the Beats By Dre sound pedigree is evident in every falsetto note and throbbing drumbeat $149.99 on Amazon $149.99 at Staples Canada You may also like: Solar String Lights – $49.99 Rattan Patio Furniture Set – $252.99 Story continues below advertisement Ninja FrostVault 45qt Wheeled Cooler – $399.99 Best durable Ultimate Ears Megaboom 4 Ultimate Ears says this IP67-rated is 'virtually indestructible.' We're pretty sure we could come up with a few ways to break it, but why would we want to? The Megaboom 4's cylindrical design means it pumps out 360 degrees of sound, reaching everyone in the room. And the patented Magic Button makes playing from almost any source—from Spotify to Apple Music—a snap. $279.99 on Amazon Best stereo experience Ultimate Ears WONDERBOOM 4 The niftiest thing about this affordable little speaker is that if you buy two you can pair them and get a true stereo experience. It's waterproof, shockproof, and has an EQ mode that cranks things up for outdoor listening. Cooler still, it also has a voice enhancement setting that makes it ideal for podcasts. $119.99 on Amazon (was $139.99) Story continues below advertisement Best bass Brane X The Brane X is all about that bass. It's the first portable speaker in its class to feature a true subwoofer, and the difference it makes is exponential. You get ten times the sub-bass of other portable speakers, meaning you'll actually feel (and not just hear) each pounding beat. The tradeoff? It's a bit of a beast. Chunky, heavy, and not waterproof. I guess bass aficionados can't have everything. $698.99 at Staples Canada Best EQ Sonos Roam 2 Sonos is known for high-tech features and high quality audio, and the American spreaker maker brings both to this small but powerful sound machine. It constantly measures how soundwaves reflect off nearby surfaces and alters the EQ accordingly to ensure an ideal listening experience. Plus, it's integrated with Amazon's Alexa, meaning you can control both the speaker and other smart home devices with your voice. $171 on Amazon (was $229) $171.99 at Best Buy Canada Story continues below advertisement Best for camping Sony ULT Field 1 No portable speaker list would be complete without an entry from Sony, a true pioneer in portable music. The ULT Field 1 sits in the affordable wireless speaker pile, with features like a detachable tether, IP67-rated durability, and a bass boost button. The forest green model is a good pick for campers and hikers. $109.99 on Amazon (was $119.99) $179.99 at Staples Canada Best splurge Bose SoundLink Max Up for a splurge? Then you can stop reading now and just order the Bose SoundLink Max. It checks all the boxes. Rich, pulsing bass. Long battery life. An AUX jack so you can connect turntables and MP3 players. The ability to act as a charger for other devices. And it's waterproof, dustproof, and shock resistant, to boot. It's pretty much the pinnacle of portable speakers. $459 on Amazon (was $549) $459.99 at Staples Canada Story continues below advertisement You may also like: Long Box Planter – $179.99 Outdoor Side Tables – $54.99 Patio Umbrella – $479.00
Globe and Mail
8 hours ago
- Globe and Mail
Can Rivian Realistically Return to Growth in 2025?
When many investors turned to find the next Tesla, which is easier said than done, some turned to the young electric vehicle (EV) maker Rivian Automotive (NASDAQ: RIVN). The company had proven capable of manufacturing high-quality vehicles, impressed critics and consumers alike, and inked a massive deal for delivery vans (EDVs) with Amazon -- life was good. Exiting 2023 you could argue Rivian had more momentum than any EV maker out there, but that has since dissipated and left investors wondering if the automaker can return to growth in 2025. The harsh truth The harsh truth is that the automotive industry is extremely competitive, and it takes an automaker with a full lineup to be truly successful. That hampers Rivian's ability to post extreme growth as the company only offers the R1T, R1S, and EDVs. But what's worse is that Rivian's only offerings are aging, and demand for them is waning -- it's been a noticeable trend. So the question facing investors is: Can the automaker return to growth in 2025 before the highly anticipated R2 launch in 2026? Driving demand Investors in the know understand that Rivian has a small consumer base, but that it's a highly passionate base as well. There are Rivian adventure groups all across social media with consumers planning trips among other things. Rivian is attempting to tap into this passion with its first major marketing push, which the company could certainly use to help stoke demand for its vehicles. "This campaign is about celebrating the people who define what Rivian truly is," said Vice President of Marketing Denise Cherry on Rivian's blog. "Our vehicles are made to empower exploration and adventure, but it's the stories our owners create that give them real soul. For our first 360 brand campaign, we wanted to make sure our owners were the spotlight." Rivian has largely relied on word of mouth and organic growth to spread its brand awareness, but with demand waning over the past year, this marks the right time for the company to try to drive interest and demand for its R1 vehicles. The next step Then it'll be time for the R1 vehicles to hand the baton to the R2 in 2026, which starts at roughly $45,000, or about half the price of Rivian's R1 vehicles. With 155,000 production units annually the R2 will be able to nearly double production of the R1S and R1T. If demand is there, expect deliveries to take off and accelerate through 2026. Investors also can't forget Rivian's big-time move to swap initial production of the R2 from its Georgia plant, which is under construction, to its Illinois plant thanks to an expansion of the factory. It's a move that not only fills production capacity at its original plant, but that saved the company roughly $2.25 billion. What it all means The harsh truth is that Rivian is unlikely to return to growth in 2025, unless its marketing campaign works miracles to drive immense demand. The automaker is essentially all-in on its R2, which boasts a much lower-cost bill of materials and improved tech, and will rely on the R2, R3, and R3X to take the company into its next growth stage. The near-term environment for EVs is pessimistic, especially with the current administration pulling support for the EV industry, and Rivian lacks any visible catalysts for the stock in 2025. But investors would be wise to take the long-term approach with Rivian. The company just achieved two consecutive quarters of gross profit and if it executes the production ramp-up of the R2 in 2026, it will be a much better year for investors. Where to invest $1,000 right now When our analyst team has a stock tip, it can pay to listen. After all, Stock Advisor's total average return is 996%* — a market-crushing outperformance compared to 174% for the S&P 500. They just revealed what they believe are the 10 best stocks for investors to buy right now, available when you join Stock Advisor. *Stock Advisor returns as of June 9, 2025
Globe and Mail
13 hours ago
- Globe and Mail
Can Shopify's Expanding Merchant Base Sustain Its Growth Momentum?
Shopify SHOP is benefiting from robust growth in its merchant base driven by its merchant-friendly tools, including Shop Pay, Shopify Pay Instalments, Sign in with Shop and the Shop App. The strong adoption of these solutions holds promise for Shopify's prospects. In the first quarter of 2025, Merchant Solutions' revenues were $1.74 billion and accounted for 73.7% of Shopify's total revenues. On a year-over-year basis, merchant revenues increased 29%, driven by strong Gross Merchandise Volume and increased penetration of Shopify payments. Among these offerings, Shop Pay stands out as a key driver of this momentum. The app processed $22 billion in Gross Merchandise Value in the first quarter of 2025, up 57% year over year. Large brands like Birkenstock, Lilly Pulitzer, and Johnny were adopted by Shop Pay, enhancing Shopify's portfolio. Shopify's investment in AI-driven tools, such as Shopify Sidekick, and Shop Inbox, is helping merchants improve customer engagement and streamline operations. By leveraging AI, Shopify enhances its platform's power and user-friendliness. An expanding partner base that includes TikTok, Snap, Pinterest, Criteo, IBM, Cognizant, Amazon, PayPal, Roblox, YouTube, Target, Manhattan Associates, COACH, Oracle and Adyen is expected to expand its merchant base further. SHOP Faces Stiff Competition From AMZN and BABA Shopify is facing stiff competition in the e-commerce marketplace against the likes of Alibaba BABA and Amazon AMZN. Alibaba's ecosystem approach provides multiple revenue streams and cross-selling opportunities. Customer management revenues at Taobao and Tmall grew 12% year over year, reflecting improved monetization and merchant engagement. In 2025, Alibaba announced that Taobao and Tmall Group have strengthened their partnership with lifestyle content platform Xiaohongshu, enabling merchants to embed product links from their Taobao and Tmall stores directly into Xiaohongshu content posts. Amazon's 'Buy with Prime', which combines its payments and fulfillment services and makes them available at checkout on other websites and promises faster delivery for Prime members, intensifies competition for Shopify. In the first quarter of 2025, Amazon set new delivery speed records for Prime members and delivered more items same-day or next-day than in any previous quarter. SHOP's Share Price Performance, Valuation and Estimates Shopify shares have surged 8.3% year to date (YTD), outperforming the broader Zacks Computer & Technology sector's return of 2.4%. The Zacks Internet Services industry declined 3.9% in the same time frame. SHOP Performance SHOP stock is trading at a premium, with a forward 12-month Price/Sales of 12.14X compared with the industry's 5.31X. SHOP has a Value Score of F. SHOP Valuation The Zacks Consensus Estimate for second-quarter 2025 earnings is pegged at 28 cents per share, which has decreased by a penny over the past 30 days, indicating a 7.69% increase year over year. The consensus mark for 2025 earnings is pegged at $1.40 per share, unchanged over the past 30 days, suggesting 7.69% year-over-year growth. SHOP currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Zacks' Research Chief Names "Stock Most Likely to Double" Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest. This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%. Free: See Our Top Stock And 4 Runners Up Inc. (AMZN): Free Stock Analysis Report Alibaba Group Holding Limited (BABA): Free Stock Analysis Report Shopify Inc. (SHOP): Free Stock Analysis Report
