10:51 AM EDT, 05/02/2025 (MT Newswires) -- Amazon.com ( AMZN ) posted strong Q1 earnings, beating Wall Street's profit expectations, but offered cautious guidance for Q2 as macroeconomic uncertainty and potential tariff impacts cloud the near-term outlook, Wedbush said in a report Friday.

The e-commerce and cloud giant reported Q1 revenue of $155.7 billion, up 8.6% year over year, while operating income came in at $18.4 billion, about 5% above expectations, with a margin of 11.8%, Wedbush said.

Despite the solid quarter, Amazon ( AMZN ) projected Q2 operating income between $13.0 billion and $17.5 billion, potentially falling short of the Wall Street's $17.7 billion consensus. Revenue guidance was more upbeat, expected to range between $159 billion and $164 billion, up 7.4% to 10.8% from a year earlier, the report said.

"Still, we expect there is some conservatism embedded in management's outlook, as the company has outperformed the high end of its operating income guide in each of the last 9 quarters," Wedbush said.

Amazon Web Services grew 16.9% year-over-year, just below expectations, as AI demand surged. Growth was limited by capacity constraints, which Amazon ( AMZN ) aims to resolve with $105 billion in 2025 investments, expecting relief in the second half of next year, the report said.

Wedbush maintained an outperform rating on Amazon ( AMZN ) and raised its price target to $235 from $225.

Price: 188.69, Change: -1.51, Percent Change: -0.79