Amazon (NASDAQ:AMZN) reported its Q1 earnings, with EPS of $0.31 coming in better than the Street estimate of $0.21. Revenue was $127.4 billion, beating the Street estimate of $124.55 billion.

Retail margins continued outperforming with a solid Q1 and Q2 guide, but the AWS revenue outlook was light and it’s not clear that Q2 (or even Q3) necessarily represents the trough. The unprecedented AWS deceleration represents some new multiple compression risk to the name where clarity on reacceleration timing may take a few quarters. As a result, shares closed nearly 4% lower on Friday.

For Q2/23, the company expects revenue in the range of $127-$133 billion, compared to the Street estimate of $129.8 billion.