Amazon's Q1 Sell-Off Was Premature: Why Now Could Be a Golden Buying Opportunity

Amazon’s stock price dropped sharply following its Q1 2025 earnings report, with shares falling over 4% in after-hours trading. The sell-off was fueled by concerns over slowing AWS growth, tariff-related margin pressures, and cautious Q2 guidance. But did investors overreact? A closer look at the data reveals that Amazon’s core strengths remain intact, and the dip may present a rare buying opportunity.

The Earnings Reality: A Strong Quarter, Not a Disaster
Amazon reported Q1 revenue of $155.7 billion, narrowly beating estimates by $500 million, while earnings per share ($1.59) crushed forecasts of $1.36. Operating income hit $18.4 billion, up 20% year-over-year, and operating cash flow soared to $113.9 billion over the trailing 12 months—a 15% increase from 2024. These figures underscore Amazon’s financial resilience, with AWS revenue growing 17% to $29.3 billion, and Prime membership continuing to drive loyalty.