Amazon CEO Andy Jassy Says Many Shoppers Are “Stocking Up” To Get Ahead Of Tariffs – Update
Amazon CEO Andy Jassy says some customers are “stocking up” in advance of widespread tariffs planned by President Donald Trump.
“Obviously, none of us knows exactly where tariffs will settle, or when,” Jassy told Wall Street analysts on the tech giant’s first-quarter earnings call. “We haven’t seen any attenuation of demand yet. To some extent, we’ve seen some heightened buying in certain categories that may indicate stocking up in advance of any potential tariff impact.”
Jassy said average retail prices are holding steady. He maintained that the company is “not uniquely susceptible to tariffs” because of its structure, especially in regard to China, which is at the center of the trade war and back-and-forth tariffs.
Amazon’s reputation for selection, speedy delivery and broad selection, which notably came into play during Covid when masks and hand sanitizers were in hot demand, will serve the company well for the current shocks, Jassy said.
“When there are uncertain environments,” he said, “customers tend to choose the providers they trust the most.”
PREVIOUS: Amazon made a tacit acknowledgement of the uncertain economic climate, offering guidance in its quarterly earnings report that fell short of Wall Street expectations.
The guidance for second-quarter operating income was included in the company’s report of first-quarter results, which saw earnings and revenue both beat analysts’ forecasts.
Earnings came in at $1.59 per share on an adjusted basis, with revenue of $155.7 million. The revenue figure slightly exceeded expectations, while earnings cleared the bar more easily. Advertising services revenue increased 18% from the year-ago quarter to reach $13.9 billion. The company is in the midst of a heavy push into video advertising, with its Prime Video service having last year put ads on all film and series titles. Prime Video also acquired NBA rights, to go with its successful exclusive streams of NFL Thursday Night Football.
After the earnings release hit the wire after the close of the market day, shares in Amazon fell nearly 4% in after-hours trading.
“We’re pleased with the start to 2025, especially our pace of innovation and progress in continuing to improve customer experiences,” CEO Andy Jassy said in the earnings release, in a quote that expressly avoided any mention of the economy.
Earlier this week, a press report about a purported plan by Amazon to display the exact tariff amounts being applied to various products across its vast digital retail site drew the ire of the White House. Earlier this earnings season, bank executives were outspoken in expressing their concerns about how Donald Trump’s erratically applied tariffs would burden businesses and consumers.
MORE to come …
