Zerohedge

The start of this week began badly for the Pentagon, as it revealed it had ‘lost’ a fighter jet in the Red Sea amid the ongoing Yemen bombing campaign. A US Navy F/A-18 Super Hornet fighter jet “fell overboard from the USS Harry S. Truman aircraft carrier while it was being towed on board” – the US military said, and supposedly while the large carrier was making an evasive turn amid inbound Houthi drones or missiles.

The Houthis have been celebrating this as a ‘win’. But Defense Secretary Pete Hegseth has on Thursday put Iran on notice, alleging close support from Tehran to the Houthis, saying it ‘will pay’.

Hegseth addressed the Iranians in a fresh message on X, saying: “We see your lethal support to the Houthis. We know exactly what you are doing.”

“You know very well what the US military is capable of — and you were warned. You will pay the consequence at the time and place of our choosing,” he continued.

Hegseth as part of the message shared a screenshot of a prior Trump post on his Truth Social, originally written in mid-March, in which the president charged that Iran is “dictating every move” the Houthis make as well as providing arms and intelligence. 

“Every shot fired by the Houthis will be looked upon, from this point forward, as being a shot fired from the weapons and leadership of Iran,” the president wrote at the time.

But the Islamic Republic has firmly rejected the accusations, highlighting that the Houthis are a political and military movement which acts independently and makes its own decisions, especially on the battlefield.

“Ansar Allah (the Houthis), as the representative of the Yemenis, makes its own strategic decisions, and Iran has no role in setting the national or operational policies of any movement in the resistance front,” Iran’s Revolutionary Guard Corps (IRGC) Commander Hossein Salami said soon after the US renewed its bombing campaign on March 15.

The Houthis have pledged not to stop attacks on Western warships in the Red Sea as well as Israel, so long as Israel’s military remains active in Gaza. The Red Sea conflict started again almost immediately after the Hamas-Israel ceasefire and hostage exchange deal collapsed.

International shipping through the vital water-way has been essentially blocked for well over a year, and the industry has been forced to adjust. Russian and Chinese commercial vessels have been allowed safe-passage by the Houthis.

https://t.co/DKl55mmFaT pic.twitter.com/vsVttencfH

— Pete Hegseth (@PeteHegseth) May 1, 2025

Hegseth’s fresh threat toward Iran strongly suggests the Iran debate is still alive and well within the administration. Trump has been urging Iran to sign a fresh nuclear deal or else face possible bombing campaign by the US, and likely Israel. Hegseth has previously been reported to be on DNI Tulsi Gabbard’s side – against the hawks and desiring climb-down in terms of Iran tensions. 

Authored by Alex O’Donnell via CoinTelegraph.com,

Tether plans to launch a stablecoin product in the United States as soon as this year, the stablecoin issuer’s CEO, Paul Ardoino, said in an April 30 CNBC interview.

Tether’s flagship stablecoin, USDt, is already the US dollar’s top “exporter,” Ardoino told CNBC. 

It has a market capitalization of nearly $150 billion, according to data from CoinGecko. 

Now, Tether is preparing to expand into the US market “by the end of this year or early next year, at the fastest,” Ardoino said, adding that the timing depends on US lawmakers’ progress on stablecoin legislation.

The stablecoin issuer is working to woo US regulators by proactively collaborating with law enforcement and highlighting USDt’s benefits for the US economy.

“We are just exporters of what we believe to be the best product the United States ever created — that is, the US dollar,” the CEO said.

Tether’s USDT has 66% of the stablecoin market share. Source: Nansen

Market leader

As of April 25, USDt commanded a roughly 66% market share among stablecoins, according to Nansen, a Web3 researcher. 

Tether is also the most profitable stablecoin issuer, logging a net income of nearly $14 billion in 2024. 

It earns revenue by accepting US dollars to mint USDt and then investing those dollars into highly liquid, yield-bearing instruments such as US Treasury bills. Still, USDt’s popularity is largely limited to users outside of the United States, where rival stablecoin USDC is dominant.

Tether designed USDt “for the people that live in small villages in Africa… [or] a shop owner in Istanbul,” Ardoino told CNBC, adding that Tether is developing a “different product” for the US.

Adoption of USDC has accelerated in the wake of US President Donald Trump’s November election win, Nansen said in an April 25 report. Circle’s USDC has a market capitalization of more than $60 billion, CoinGecko data shows. 

However, USDt is still likely to maintain its leading position in the stablecoin market.  “Despite the potential dispersion in stables, we inevitably believe this is a ‘winner-takes-most’ market dynamic,” the Web3 researcher added. 

The U.S. House of Representatives passed (245-164) Rep. John Joyce’s (R-PA) H.J. Res.88, a resolution blocking the Biden Environmental Protection Agency’s waiver that would let California ban petrol-powered cars and trucks and force dystopian electric vehicle mandates nationwide. 

H.J. Res. 88 seeks to overturn a Biden-era EPA decision that granted California a waiver to ban the sale of new petrol-powered vehicles by 2035. This mandate would’ve had massive ripples far beyond the progressive state’s borders, forcing automakers to comply nationwide with EV mandates, thus leading to a surge in driving costs for all working families. Without intervention, California’s toxic climate policy could effectively dictate EV mandates nationwide. 

“Today, the House passed RepJohnJoyce’s H.J.Res.88 to reverse a Biden-era regulation that requires all of the vehicles in America to be emission-free,” House Republicans wrote on X, adding this repeal would be some of the first steps in “reversing Biden’s disastrous EV mandates and giving power back to consumers to decide which cars they want to drive.” 

Today, the House passed @RepJohnJoyce’s H.J.Res.88 to reverse a Biden-era regulation that requires all of the vehicles in America to be emission-free.

House Republicans are reversing Biden’s disastrous EV mandates and giving power back to consumers to decide which cars they… pic.twitter.com/lc63WUKD4h

— House Republicans (@HouseGOP) May 1, 2025

As of May, eleven U.S. states have adopted California’s plan to phase out the sale of gasoline and diesel-powered vehicles. These states include New York, Massachusetts, Oregon, Washington, Vermont, New Jersey, Maryland, Delaware, New Mexico, Colorado, and Virginia. Together, these states account for about 40% of the U.S. auto market.

“Proud to see my bill to protect consumer choice in the automobile market pass the House in a bipartisan fashion,” Rep. Joyce wrote on X.

The Republican representative from Pennsylvania noted, “Congress cannot allow California to set national policy. I urge my Senate colleagues to pass this legislation so @POTUS can protect the freedom of the open road for the American people.”

Proud to see my bill to protect consumer choice in the automobile market pass the House in a bipartisan fashion.

Congress cannot allow California to set national policy. I urge my Senate colleagues to pass this legislation so @POTUS can protect the freedom of the open road for… pic.twitter.com/1S5QDg3Ywm

— John Joyce, M.D. (@RepJohnJoyce) May 1, 2025

Dismantling California’s EV mandates is a top priority for President Trump. This week, the Western world was served a sobering reminder of the consequences tied to the aggressive march toward net zero death: 

NatGas Generators Rescued Spain From Net Zero Death After Power Collapse https://t.co/NAthNQjTJY

— zerohedge (@zerohedge) April 30, 2025

Action on the measure now moves to the Senate.

Authored by Janice Hisle and Savannah Hulsey Pointer via The Epoch Times,

The man arrested by immigration authorities in Milwaukee – despite a Wisconsin judge’s alleged attempt to shield him – is being held in a neighboring county’s jail as controversy continues to swirl around the case.

Eduardo Flores Ruiz, 30, was locked up in the Ozaukee County Jail awaiting further court action as of April 30.

He is accused of injuring three people in a recent domestic dispute, online records show.

The Mexico native is the defendant whom Judge Hannah Dugan is accused of assisting in an April 18 incident at the Milwaukee County Circuit Court.

Flores Ruiz appeared at the court for a hearing on that date, but it didn’t proceed, federal authorities say, after Dugan allegedly took actions to thwart Immigration and Customs Enforcement (ICE) officers who were poised to arrest the defendant and begin deportation proceedings.

Federal officials accuse the judge of helping Flores Ruiz and his lawyer to exit through a restricted-use door. Officers, however, were able to arrest him after a foot chase outside the courthouse.

He was previously deported to his home country in 2013, before being accused in the domestic violence case that was assigned to Dugan, officials said.

The state Supreme Court suspended Dugan while she contests charges of concealing Flores Ruiz and obstructing ICE.

Dugan, who was arrested on April 25, is set for her next court hearing as a defendant on May 15 in Milwaukee federal court.

This 2016 photo shows Judge Hannah Dugan in Milwaukee, Wis. Lee Matz/Milwaukee Independent via AP

Milwaukee County court and police records reveal more information about the incident that landed Flores Ruiz in Dugan’s court on three domestic abuse-battery charges.

Three people told police that Flores Ruiz injured them during a March 12 verbal and physical altercation, after which two of them sought hospital treatment.

Miguel Mendoza-Figueroa alleged that Flores Ruiz “intentionally … struck him multiple times in his body and face, causing pain and scratches during a verbal argument about loud music,” the police report says. 

The man reported being punched about 30 times.

When Deyci Torres Sierra, identified as Miguel’s girlfriend, tried to intervene, Flores Ruiz “struck her multiple times in her head” with his fist, inflicting pain, the report says.

A second woman, Maria Sierra Chihuahua, said she, too, tried to break up the fight, and Flores Ruiz “elbowed her in her upper left arm.”

Police said that, when questioned at the scene, Flores Ruiz described the incident as “a mutual fight” between himself and Mendoza-Figueroa, a court record shows.

The defendant is set to appear on the three charges in the county court again on May 14. Each of the charges is a Class A Misdemeanor, punishable upon conviction by a fine of up to $10,000 and nine months behind bars.

Dugan remains in online records as the judge assigned to his case, despite her temporary suspension from duty. The Epoch Times was unable to reach the court’s chief justice for clarification.

The Epoch Times sought comment from Flores Ruiz’s lawyer, Mercedes de la Rosa, and the local prosecutor handling the case, Kylan Reilly, and received no reply prior to publication.

Ahead of Apple’s earnings report this afternoon, which concludes the results from big 4 group of the Mag 7 (including MSFT, META and AMZN) UBS said that sentiment was a 5/10, with the bank’s analyst expecting some pull-forward offsetting soft demand, while creating tougher 2H compares with the consensus too optimistic. UBS, which has a $210 price target, reiterated its $210 price target (Neutral) warnings that although the rich valuation remains a perennial overhang, sentiment is more cautious given the ongoing tariff and market share headwinds. The bottom line: with the mild short bias ahead of the print, there was a decent chance for a tactical bounce due to pull-ins, but probably not enough to alleviate the ongoing concerns.

And sure enough, 30 minutes after AMZN disappointed with lackluster AWS profit margins and a soft operating profit forecast, it would be 2 for 2 for the bears, with AAPL stock sliding on disappointing China sales even as tariff fears sent iPhone purchases across the world into overdrive. Here are the details:

• Adjusted EPS $1.65 vs. $1.53 y/y, beating estimate $1.62
• Total revenue $95.36 billion, +5.1% y/y, beating estimate $94.59 billion
• Products revenue $68.71 billion, +2.7% y/y, beating estimate $67.84 billion
  • IPhone revenue $46.84 billion, +1.9% y/y, beating estimate $45.94 billion
  • Mac revenue $7.95 billion, +6.7% y/y, beating estimate $7.75 billion
  • IPad revenue $6.40 billion, +15% y/y, beating estimate $6.12 billion
  • Wearables, home and accessories $7.52 billion, -4.9% y/y, missing estimate $8.05 billion
• Service revenue $26.65 billion, +12% y/y, missing estimates if $26.72 billion – this was the first red flag.

The second, and even bigger, red flag was the usual suspect: China, where revenues unexpectedly slumped, sliding 2.3%, while Wall Street was expecting a mid-single digit growth

• Greater China rev. $16.00 billion, -2.3% y/y, missing estimates of $16.83 billion

Going down the line:

• Total operating expenses $15.28 billion, +6.3% y/y, higher than estimate $15.17 billion
• Gross margin $44.87 billion, +6.1% y/y, higher than estimate $44.58 billion
• Cash and cash equivalents $28.16 billion, -14% y/y, missing estimates of $32.73 billion
• Cost of sales $50.49 billion, +4.1% y/y, higher than estimate $50.23 billion

And so on:

Looking at a breakdown of sales by product category it was a generally solid report, although that was to be expected as a result of pulled forward demand for iPhones ahead of tariffs which would likely push prices sharply higher. Here are the details: .

• IPhone revenue $46.84 billion, +1.9% y/y, beating estimates $45.94 billion but much of this was due to pulled forward sales ahead of tariffs
• Mac revenue $7.95 billion, +6.7% y/y, beating estimates of $7.75 billion, same logic here
• IPad revenue $6.40 billion, +15% y/y, beating estimates of $6.12 billion
• Wearables, home and accessories $7.52 billion, -4.9% y/y, big miss to estimate $8.05 billion

Bottom line, while most segments came in stronger than expected, much of this will likely reverse in Q3 when tariffs push prices higher (because tariffs are inflationary right), meanwhile, Apple’s wearables segment (where one can find the Vision Pro disaster) remains a big disappointment, and the new low-end AirPods and hearing features for the AirPods Pro apparently did not draw much interest.

Here is the full revenue breakdown by product:

But if iPhone sales was solid (if transitory) the devastation that is China sales was catastrophic: contrary to expectations for a modest rebound, as China sales declined for a seventh consecutive quarter, down 2.3%, and printing at only $16BN, below the $16.9BN estimate.The rest of the world saw growth, modest in the Americas at 8.2%, and stronger in Japan and APAC, while Europe barely grew.

And in dollar terms:

Needless to say, China continues to be a very weak spot for Apple and the company hasn’t done much to push new products, pricing and initiatives in that market — or other emerging areas — to offset the issues.  The weakness there, which Apple will try to explain away in its conference call, is because of a combination of nationalism and interest in local products, whose designs are getting better. The local players are also trying new things like foldables while Apple continues to use the same design it rolled out five years ago. Oh, and Trump’s trade war which is getting worse by the day, isn’t helping.

The result: revenues declining now for an unprecedented 7 quarters!

There was more: Service revenue, which for many years was the only golden goose left in AAPL’s roster, is starting to sputter, and even though it rose to a new record $26.65 billion, this missed estimates of $26.72 billion and the growth rate was the lowest in two years.

The company has been contending with multiple challenges, beyond just the looming tariffs. Apple is playing catch-up in artificial intelligence, forcing it to shuffle management in recent weeks. It’s also under mounting regulatory pressure in the EU and its home country. On Wednesday, a federal judge demanded that the company open up its App Store to third-party payment options and stop charging commissions on outside purchases.

But tariffs remain one of the biggest question marks. Though Apple is likely to sidestep the 145% China levy that the administration originally proposed, new tariffs on electronics are still coming. The turmoil threatens to upend the company’s supply chain and potentially force it to raise prices. Already, Apple is looking to make more of its US-bound iPhones in India rather than China. Ironically, it was tariffs that helped the company revenues beat estimates as customers flooded Apple retail stores to buy new iPhones and other products out of fear that price hikes were coming.

In the press release, CEO Tim Cook tried hard to stay positive, but failed.

“Today Apple is reporting strong quarterly results, including double-digit growth in Services,” said Tim Cook, Apple’s CEO. “We were happy to welcome iPhone 16e to our lineup, and to introduce powerful new Macs and iPads that take advantage of the extraordinary capabilities of Apple silicon. And we were proud to announce that we’ve cut our carbon emissions by 60 percent over the past decade.”

The bigger problem is what he said on the conference call, where it said that he hadn’t seen excess pull forward demand in Q1 (it did)…

• COOK: DIDN’T SEE EXTRA DEMAND IN MARCH QUARTER ON TARIFFS

…  and pretended not to know what the tariff impact will be:

• COOK: NOT SURE WHAT TARIFF IMPACT WILL BE AFTER JUNE QUARTER

Trump’s tariff policy may be unclear to Cook, but what is clear to everyone, is that growth for AAPL is slowing fast:

• *APPLE CFO: Q3 REVENUE TO GROW LOW TO MID-SINGLE DIGITS YOY

Which was the same guidance as the current quarter, and the market is starting to realize Cook isn’t sandbagging… instead the debate what is the right multiple on a company that has now officially flatlined. To be sure the kneejerk reaction was not happy, with AAPL stocks sliding about 3% after hours, the second consecutive quarter in which the market punished AAPL earnings, to just above $206 after closing today at the highest price since Trump’s Liberation Day.

Not even the news that the iPhone maker authorized a new $100 billion stock buyback and boosted its quarterly dividend 4% to 26 cents a share, was enough to prop up the stock.

At a time when American consumers are increasingly interested in what products are actually “Made in the USA“—as evidenced by a recent report showing a surge in related internet searches—the nation’s largest retailer announced plans this week to boost its support for American-made goods through new initiatives.

Walmart has launched a new initiative called “Grow with US,” offering tools and support to small businesses, especially those producing American-made goods. The program is designed to strengthen the U.S. economy, which is largely driven by small businesses. 

“We’re unveiling Grow with US, a new program designed to provide U.S. small businesses with the training, mentorship and resources they need to grow with Walmart,” Walmart’s U.S. CEO and president, John Furner, wrote in a press release.

The CEO pointed out that over 60% of Walmart’s U.S. suppliers are small businesses. With the ongoing trade war with China, domestic sourcing for the mega-retailer might increase. Currently, the Trump administration has 145% tariffs on all Chinese goods entering the U.S. 

“More than 40 years ago, Mr. Sam set a priority that still drives us today: supporting American-made products and the small businesses behind them. Simply put, we want small businesses to work with Walmart, but we know getting started can feel complex,” the CEO said. 

At the start of March, Furner announced a new commitment: “First, we’re announcing a new commitment: over the next ten years, Walmart will spend an additional $350 billion on items made, grown or assembled in the U.S. We estimate that this spend will support more than 750,000 new American jobs.” 

Walmart’s expanded commitment to America’s thousands of small businesses offering domestically produced goods is fantastic news as the Trump administration works to restore the nation’s manufacturing base via a trade war with China to re-shore critical supply chains that will be needed before the 2030s kick-off. 

In line with Walmart’s commitment to “Made in the USA,” we’re proud to launch a new partnership this Friday with the Beef Initiative. The goal is to connect consumers with mom-and-pop ranchers producing clean, locally sourced beef that aligns with the “Make America Healthy Again” protocols. This grassroots effort aims to help rebuild America’s mom-and-pop ranchers and farmers one beef cut at a time: Shop Clean Beef.

Let’s remember that none of this would have been possible without President Trump’s relentless push to reshore supply chains and rebuild America’s hallowed manufacturing core. There will be plenty of opportunities ahead—right here at home.

Authored by Jason Ditz via AntiWar.com,

Sectarian fighting in the Damascus suburb of Jaramana left dozens killed, and Israel is already looking to parlay that into a new excuse for military action against the Syrian government, with the idea that they need to “protect” the Druze minority militarily.

The Israeli military reported attacking the Damascus suburb of Sahnaya, and that they targeted an “extremist group” that was planning new attacks on the Druze. Prime Minister Netanyahu and Defense Minister Katz issued statements demanding the Syrian government take action to prevent further attacks on the Druze.

Details of the strike are still scant. Indeed, Syria’s Interior Ministry said they had yet to receive word that the Israeli attack even took place at all. Since Israel launches a large number of attacks inside Syria regularly, it’s not necessarily improbable that they launched one on Sahnaya, but it appears not to have been particularly large.

Israeli Army chief Eyal Zamir has threatened to carry out attacks across Syria if the attacks on the Druze don’t stop, and said that he has ordered his staff to prepare for targets in Syria to that end.

By lining up Druze youth and shaving their mustaches, Jolani’s forces didn’t just humiliate, they struck symbols. For the Druze, it’s religious.

But among Kurds, the mustache is more than pride: it’s ancestry, masculinity, defiance. It links the living to the martyred. This was… pic.twitter.com/9xE2ELVL52

— Karim Franceschi (@karimfranceschi) May 1, 2025

Though the HTS has already promised investigations into what happened Tuesday in the Druze community in Jaramana, it’s not clear Israeli threats will mean much at any rate, since Israel is already actively attacking Syria at any rate, and this is just the latest pretext for continuing that.

Also, using the Druze as an excuse isn’t even new, it’s more being revived. In early March, a smaller clash in Jaramana led to Israel similarly vowing to protect the Druze, imposing a ban on all Syrian military assets south of Damascus, and offering to give Syrian Druze in the newly occupied parts of Syria “work permits” to go into Israel to work, an offer that was later rescinded.

Jolani’s HTS regime rounds up #Druze in #Sahnaya, beating and accusing them of being fighters, echoing tactics used in Alawite massacres, where civilians were labeled ‘Assad remnants’ #Syria pic.twitter.com/8PjmyRpw4g

— HK (@HKX37) April 30, 2025

Israeli Druze are going along with this, carrying out a demonstration near Acre which Israeli police declared “illegal“. Druze make up about 2% of Israel’s population, and about 3%-4% of Syria’s population, centered mainly on the Suwayda Governorate.

Tuesday into Wednesday gunbattles were fueled by an audio clip which went viral online. The audio was of someone insulting the Muslim Prophet Muhammed, and was purported to be a Syrian Druze person speaking. It has not been verified that was actually the origin.

ISIS fighters have been able to join the New Syrian General Security forces, it seems.

Many of the fighters in Sadnaya and other suburbs of Damascus yesterday had accents from Deir ez-Zor, pronouncing the letter “kaf” as “cha”. The word kabir becomes chabir. This does not mean… https://t.co/ADGEFxE0aE

— Joshua Landis (@joshua_landis) May 1, 2025

Indeed, many people are speculating this was an effort at “incitement” against the Druze minority in Syria, and it certainly seems to have worked, at least for a time.

Syria’s Islamist government has promised to investigate this possibility, and some are suggesting it may be an external effort to fuel unrest within Syria.

Ahead of Amazon’s earnings, and following two blowout results from the first two giga-cap companies MSFT and META, UBS said that the “fast money seems to be short Amazon into the quarter on AWS and North America sales growth, with no upward revisions on the print.” Meanwhile, the longer duration money “continues to like the story around AWS reacceleration, potential EBIT upside to Street, compelling valuation and potential AI theme around core ecommerce.” In short, there was a tension between the short-term traders and long-term HODLers.

Judging by the kneejerk reaction to Q1 earnings just released, the short-termers were right, with the stock dumping after reporting mixed Q1 earnings but it was the guidance that was really disappointing. 

Here are the details:

• EPS $1.59 vs. $1.86 q/q, beating estimate $1.36

• Net sales $155.67 billion, +8.6% y/y, beating estimates of $155.16 billion

  • Online stores net sales $57.41 billion, +5% y/y, beating estimates of $56.85 billion

  • Physical Stores net sales $5.53 billion, +6.4% y/y, beating estimates of $5.41 billion

  • Third-Party Seller Services net sales $36.51 billion, +5.5% y/y, missing estimates of  $36.98 billion

    • Subscription Services net sales $11.72 billion, +9.3% y/y, beating estimates of $11.65 billion

  • North America net sales $92.89 billion, +7.6% y/y, beating estimate $92.63 billion

  • International net sales $33.51 billion, +4.9% y/y, beating estimate $33.07 billion

  • Third-party seller services net sales excluding F/X +7% vs. +16% y/y, beating estimate +6.92%

    • Subscription services net sales excluding F/X +11% vs. +11% y/y, beating estimate +8.86%

So far so good (with some exceptions).

But what first caught the market’s attention first was Amazon’s AWS revenue, which came in just below estimates:

• Amazon Web Service net sales $29.27 billion, +17% y/y, missing estimates $29.36 billion

• Amazon Web Services net sales excluding F/X +17% vs. +17% y/y, also missing estimates +17.2%

Turning to operating profits, here the results were uniformly solid:

• AWS operating profit 39.45%, up sequentially from 36.83% and smashing estimates of 35.25%

• Operating income $18.41 billion, +20% y/y, beating estimate $17.51 billion

  • Operating margin 11.8% vs. 10.7% y/y, beating estimate 11.2%

  • North America operating margin +6.3% vs. +5.8% y/y, missing estimate +6.65%

  • International operating margin 3% vs. 2.8% y/y, beating estimate 2.96%

As for fulfillment expenses, these came in slightly above estimates, while the seller unit mix was slightly worse than expected. These will likely rise quite a bit in a tariff regime:

• Fulfillment expense $24.59 billion, +10% y/y, higher than estimate $23.78 billion

• Seller unit mix 61% vs. 61% y/y, worse than estimate 61.8%

Of the above, the most notable highlight – as per our preview – was AWS which grew revenue by 17% to $29.27BN, just below the sellside estimate of $29.36BN, and the first notable slowdown in the topline in two years.

Still, if revenue growth for AWS was a bit light, the record 39.5% margin more than offset it, beating estimates of 35.35%. Elsewhere, North American profit rose to $5.84 billion, resulting in a profit of 6.29%, if below the estimate of 6.65%. Meanwhile, international margins rose to 3.30% from 3.03%.

As a result of the jump in AWS profits, Amazon’s consolidated operating margin continued to grow impressively and in Q1 grew for a 4th consecutive quarter to a new all time high of 11.8%.

However, while the above data was mixed if generally solid, it was the company’s guidance that led to an after hours drop in the stock; that’s because the company projected profit and revenue in the current quarter both of which were seen as coming in soft vs Wall Street expectations:

• Sees net sales $159.0 billion to $164.0 billion, in line with the estimate of $161.4 billion

• Sees operating income $13.0 billion to $17.50 billion, below the estimate $17.82 billion, vs $14.7 billion in Q2 2024.

• Guidance sees impact of about 10 basis points from FX

If accurate, that would mean that after revenue grew at the slowest pace since 2022 in Q1, the outlook sees revenue growth post a modest improvement, rising just over 9% in Q2.

But again, it was the subpar operating income forecast that was the big disappointment.

In response to the soft guidance and the disappointing AWS revenue growth, the stock initially pumped but then dumped…

Authored by Victor Davis Hanson via American Greatness,

Despite the media hysteria, Trump’s counterrevolution remains on course.

Its ultimate fate will probably rest with the state of the economy by the November 2026 midterm elections. 

But its success also hinges on accomplishing what is right and long overdue—and then making such reforms quietly, compassionately, and methodically.

No country can long endure without sovereignty and security—or with 10 to 12 million illegal immigrants crossing the border and half a million criminal foreign nationals roaming freely.

The prior administration found that it was easy to destroy the border and welcome the influx. But it is far harder for its successor to restore security, find those who broke the law, and insist on legal-only immigration. Trump is on the right side of all these issues and making substantial progress.

Everyone knew that a $2 trillion budget deficit, a $37 trillion national debt, and a $1.2 trillion trade deficit in goods were ultimately unsustainable.

Yet all prior politicians of the 21st century winced at the mere thought of reducing debts and deficits, given that it proved much easier just to print and spread around federal money. As long as the Trump administration dutifully cuts the budget, sends its regrets to displaced federal employees, seeks to expand private sector reemployment, and quietly presses ahead, it retains the moral high ground.

The elite universities have long hidden things from the American people that otherwise would have lost them all public support.

They deliberately sought to neuter Supreme Court rulings banning race-based preferences by stealthily continuing their often-segregated policies on campuses, from admissions and hiring to dorms and graduations.

They have taken billions of dollars from autocracies, such as communist China and Qatar. And they have partnered abroad with their foreign illiberal institutions and then disguised their quid pro quo subservience.

These supposedly prestigious universities have previously made no real effort either to stop or even hide their own campus epidemics of anti-Semitism.

They have spiked their tuition and costs higher than the annual rate of inflation, assured that the tottering $1.7 trillion guaranteed student loan portfolio would always send them guaranteed cash flows.

They have gouged taxpayers by charging exorbitant surcharges on federal grants from 40 to 60 percent. And they make no effort to offer students intellectual, ideological, or political diversity.

So, even our most prestigious universities seem to have no real moral compass. Accordingly, as long as Trump retains the high ground, the public, too, will demand either reform in higher education or a cessation of federal support to it.

The economy remains strong, but its ultimate health depends on reaching a trade deal with a handful of nations that account for our $1.2 trillion trade deficit in goods: China, the EU, Canada, Mexico, the Southeast Asian trade bloc, and Taiwan, Japan, and South Korea.

These nations all know that their tariffs are not symmetrical. But our trade partners will not willingly change. They apparently, but wrongly, believe that the U.S. either welcomes its trade deficits, naively thinks they’re irrelevant, or is too wedded to libertarian trade ideology to demand accountability.

So, too, on trade, the Trump administration is in the right.

Its only challenge is to avoid envisioning tariffs as a new, get-rich source of massive revenue. Data does not support the idea of such large tariff incomes.

The American people signed on for symmetry, fairness, and reciprocity in trade, not tariffing those who run deficits with us or seeing high tariffs as a cash cow to fund our out-of-control government.

Enraged Democrats still offer no substantial alternatives to the Trump agenda.

There are no shadow-government Democratic leaders with new policy initiatives. They flee from the Biden record on the border, the prior massive deficits and inflation, the disaster in Afghanistan, two theater-wide wars that broke out on Biden’s watch, and the shameless conspiracy to hide the prior president’s increasing dementia.

Instead, the Left has descended into thinly veiled threats of organized disruption in the streets. It embraces potty-mouth public profanity, profane and unhinged videos, nihilistic filibusters, congressional outbursts, and increasingly dangerous threats to the persons of Elon Musk and Donald Trump.

All that frenzy is not a sign that the Trump counterrevolution is failing. It is good evidence that it is advancing forward, and its ethically bankrupt opposition has no idea how, or whether even, to stop it.

Authored by Steve Watson via Modernity.news,

Dramatic footage shows agents with US Customs and Border Protection Air and Marine Operations halting an attempt by human traffickers to smuggle a boat full of illegals into the country earlier this week.

The video posted to X shows the moment the agents rammed into the boat in an incident off the coast of California.

Border Patrol Chief Michael Banks stated that the CBP was alerted by the Mexican Navy that the vessel had refused to stop for them and the U.S. Coast Guard in a previous encounter.

USBP and CBP Air & Marine Operations (AMO) stopped two suspected smugglers in the open waters of San Diego, CA, after receiving reports from the Mexican Navy about a vessel with two individuals that failed to stop for them and the U.S. Coast Guard a few days prior. Law… pic.twitter.com/tgLXqOh11a

— Chief Michael W. Banks (@USBPChief) April 28, 2025

Banks noted that AMO agents attempted to stop the boat near the San Diego coastline, but the driver refused to heave, forcing the escalated action.

The agents rammed the boat and disabled it, allowing them to detain two alleged human smugglers.

“Even in the open ocean, the border has a line- and we will defend it,” Banks urged.

Last week, Banks revealed that another vessel was intercepted carrying 19 illegal aliens, three of whom are thought to be traffickers.

U.S. Border Patrol and the U.S. Coastguard intercepted a human smuggling attempt just off the coast near Oceanside, CA. The leisure vessel was carrying 19 illegal aliens, 3 of which were smugglers. The smugglers now face felony charges for alien smuggling (8USC1324), while the… pic.twitter.com/E1seXLjEFi

— Chief Michael W. Banks (@USBPChief) April 25, 2025

Such incursions are increasing in frequency now the land borders have been completely locked down by the Trump administration.

New US Border Stats

– 99.99% decrease in so called getaways
– Illegal border encounters are now down 95%
– Trump administration has deported roughly 139,000 people
– Under Biden, border patrol officials dealt with up to 15,000 crossings per day
– Under Trump, Homan said that… pic.twitter.com/VYmeTNwXfL

— Wall Street Apes (@WallStreetApes) April 30, 2025

JUST RELEASED: 99.9% at the Border. Best number ever recorded. 3 people got in, versus hundreds of thousands in last Administration. There has NEVER been such a difference before. Congratulations America!

From Donald Trump Truth Social 04/27/25 08:57 AM

— Donald J. Trump Posts From His Truth Social (@TrumpDailyPosts) April 27, 2025

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