Amazon Falls 10% to $237.50 as Fed Keeps Rates Steady and AWS Grows 28%
AMZN•Federal Reserve Chair Kevin Warsh kept benchmark interest rates unchanged at his first meeting and cut back Fed disclosures, heightening uncertainty. Amazon shares trade near $237.50 after falling 10% from their peak, despite AWS’ 28% Q1 revenue growth and margin expansion, as analysts forecast up to 36% upside.
1. Fed Maintains Rates and Cuts Disclosures
Federal Reserve Chair Kevin Warsh held his first policy meeting, leaving benchmark interest rates unchanged and signaling potential future hikes. He also reduced the frequency and detail of Fed communications, which may limit market visibility into monetary policy decisions.
2. Amazon Shares Slide 10%
Amazon’s stock has declined about 10% from its recent high, trading around $237.50. The pullback follows broader market uncertainty and investor caution over macroeconomic policy.
3. AWS Growth and Analyst Projections
Amazon Web Services delivered 28% year-over-year revenue growth in Q1, alongside margin expansion driven by custom silicon like Graviton and Trainium. Analysts project up to 36% share price upside based on accelerating AI-driven capital expenditures and infrastructure efficiency.
