Amazon reported better-than-expected results for the first quarter, driven in part by a surge in its online advertising business, which posted a 19% jump in revenue. The tech giant generated $13.92 billion from advertising between January and March, surpassing analyst estimates of $13.74 billion, according to data from StreetAccount.
Total revenue for the quarter reached $155.67 billion, slightly above Wall Street’s forecast of $155.04 billion.
While advertising still represents a smaller slice of Amazon’s overall business, it has grown rapidly in recent years and now ranks as the third-largest player in the global digital ad market, behind Alphabet (Google) and Meta (Facebook and Instagram).
The robust performance comes amid broader economic uncertainty and geopolitical tensions, particularly rising trade friction between the United States and China. Analysts warn that while Amazon’s core retail segment may feel the pinch from potential tariffs, the advertising division could also face challenges if market conditions deteriorate.
Despite this cautionary tone, Amazon’s results echo a wider trend among major tech firms, many of which have reported strong first-quarter earnings from their advertising units. Still, several have flagged the potential for headwinds in the second half of the year. Investors will be watching closely to see whether Amazon can maintain momentum in its fast-growing ad business while navigating a volatile global environment.