Amazon’s AI Push & Satellite Ambitions Are Colliding With Trade War Fears; What Could Pershing Square Be Seeing In The Company?

Amazon.com, Inc. delivered a strong performance in the first quarter of 2025, reporting $155.7 billion in revenue—a 9% year-over-year rise—and a net profit of $17.1 billion that exceeded Wall Street estimates. Operating income also grew 20% to $18.4 billion, with trailing 12-month free cash flow hitting $25.9 billion. The North American and international segments each posted approximately 8% revenue growth, even amid foreign exchange headwinds. Amazon Web Services (AWS), a critical profit center, grew 17% year-over-year, reaching a $117 billion annualized run rate. However, AWS slightly missed analysts’ forecasts and is grappling with infrastructure capacity constraints, particularly as demand for its AI-related services grows.