FILE PHOTO: A person works at the Amazon warehouse, busy on Prime Day, in Melville, New York, U.S., July 11, 2023. REUTERS/Soren Larson/File Photo
(Reuters) -Amazon.com forecast second-quarter revenue largely above estimates on Thursday, in a reassuring sign the e-commerce giant would navigate tariff-related uncertainty, but growth in its closely watched cloud unit lagged.
Shares of the company fell 5% in after-hours trading.
Amazon Web Services, the company's cloud unit, is showing signs of weakness, with revenue growth of 17% to $29.27 billion missing expectations of a 17.4% growth.
AWS, the largest cloud provider, lagged No. 2 player Microsoft, which reported blowout cloud numbers on Wednesday, as well as Google Cloud which reported revenue just shy of Wall Street expectations.
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 $159.0 billion and $164.0 billion for the second quarter, compared with analysts' average estimate of $160.91 billion, according to data compiled by LSEG.
(Reporting by Deborah Sophia in Bengaluru; Editing by Sriraj Kalluvila)
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