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Wall Street Breakfast

Amazon tops expectations, issues cautious outlook

Wall Street Breakfast

Seeking Alpha

Business, Investing, Business News, News

3.8950 Ratings

🗓️ 2 May 2025

⏱️ 6 minutes

🧾️ Download transcript

Summary

Amazon (AMZN) talks up AI potential on earnings call, points to limited tariff impact so far. (00:27) American Airlines (AA) commits to $4 billion expansion at Dallas airport. (01:45) WHO set to back use of weight loss drugs such as Zepbound (LLY), Wegovy (NVO) - report. (02:34)

Episode transcripts seekingalpha.com/wsb.

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Transcript

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0:00.0

Welcome to Seeking Alpha's Wall Street Breakfast, where we cover the top news for investors every morning.

0:08.0

It's good to have you here on this Friday, May 2nd, the second day of the trading month, but the final day of the trading week. I'm Julie Morgan.

0:17.1

Amazon beat forecast, but the stock is still down pre-market.

0:26.7

American is expanding at DFW and the WHO is set to back obesity drugs.

0:33.3

Amazon is at the center of the retail universe after its earnings report showed strong results,

0:42.3

with net sales rising 9% year-over-year to 15.7 billion and net income jumping to 17.1 billion, both surpassing analysts' expectations. Amazon Web Services revenue grew 17% to 29.2 billion,

0:51.0

while advertising revenue increased 19% to 13.92 billion. However, Amazon's

0:58.3

Q2 operating income guidance fell short of Wall Street forecasts, raising concerns about profitability

1:04.4

amid new U.S. tariffs on Chinese goods. Looking ahead, Amazon expects revenue of 159 to 164 billion for the second quarter

1:14.3

versus a $161.4 billion consensus. Amazon also guided for operating income of $13 to $17.5

1:23.0

billion versus a $17.8 billion consensus.

1:31.1

On the conference call, CEO Andy Jassy addressed tariffs.

1:35.4

Jassy said the company has seen heightened buying in certain categories.

1:40.5

He highlighted that most sellers have not reset retail prices higher yet,

1:43.7

but could in the future if the tariff battle extends.

1:51.0

American Airlines in Dallas-Fort Worth International Airport on Thursday unveiled revised plans for Terminal F, finalizing a $4 billion expansion project.

1:56.1

The two said in a statement that the plan will increase the number of gates at the new terminal

2:00.8

to 31,

2:02.2

more than twice as many as initially envisioned.

2:05.3

The terminal will be used exclusively by the airline.

2:09.0

DFW and American Airlines reached a new 10-year use and lease agreement in 2023,

2:14.8

with pre-approved capital investments, including the construction of

...

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