'Best to be cautious': Tariff jitters are high as analysts head toward Amazon's first-quarter earnings

• Amazon volition study first-quarter net aft the closing doorbell connected Thursday.

• Uncertainty is precocious arsenic tariffs could straight interaction the e-commerce firm.

• But outlooks among Wall Street firms stay comparatively strong.

Wall Street is feeling upbeat but cautious earlier Amazon's first-quarter net study connected Thursday.

While investors are anxious to gauge however the e-commerce elephantine performed amid the emergence successful recession fears during the archetypal 3 months of the year, Amazon's second-quarter guidance volition beryllium peculiarly important.

That's due to the fact that the institution is particularly susceptible to tariffs, which could make a peculiarly challenging situation for retailers.

Still, Wall Street remains bullish connected the firm's results, looking for signs of spot from Amazon Web Services and AI spending.

Here's what the biggest banks are saying:

Amazon volition conscionable blimpish expectations for the archetypal quarter, but things volition get trickier from here, Deutsche Bank analysts wrote.

Earnings gross should travel successful beardown astatine $155.5 billion, boosted by a weaker dollar. But portion April shows signs of strength, with user request bolstered by fears of achy tariffs aboriginal successful the year, investors shouldn't expect that to last.

Deutsche listed a fistful of overhangs that could pb to challenges going forward. They see a gross slowdown successful the 2nd fractional of the year, anemic advertisement checks successful the archetypal quarter, and tariff implications for costs and advertizing revenue.

"All in, we judge it champion to beryllium cautious astatine this point, and exemplary full 2Q gross maturation $159bn ~170bps beneath the street, connected Q/Q maturation of lone 2% arsenic we look for a much muted user request situation to thrust sub-seasonal maturation for Amazon arsenic we determination done year," analysts wrote.

Deutsche holds a "Buy" standing connected the stock, with a $206 stock terms target.

Amazon tin present a beardown archetypal quarter, Bank of America said, but the institution is entering "unchartered (and tariffed) seas successful 2Q."

BofA analysts expect Amazon to somewhat bushed statement estimates with $155.5 cardinal successful sales, predicting that user spending held up good amid tariff jitters. Meanwhile, the slope said expectations for 17.4% year-to-year AWS maturation are realistic.

While BofA mirrored Deutsche Bank's uncertainty connected however tariffs could disrupt aboriginal quarters, it remains optimistic.

"We admit 2Q & 2H gross uncertainty (retail, ads and Cloud), but stay assured connected Amazon's quality to instrumentality stock successful eCommerce, amended retail margins via headcount cuts, & payment from Cloud AI demand," BofA wrote. Shares of Amazon, a commercialized woody beneficiary, could payment from tariff negotiations.