Categories: Tech

Amazon announces major losses in the first quarter of 2022

Amazon increases revenues in this first quarter 2022but report net losses of 3.84 billion of dollars compared to the same period last year (when it was 8.11 billion). The company appears to have suffered from rising fuel costs and the reopening of brick-and-mortar stores in many countries. But also of the financial burden of investing in Rivian Automotive.

Amazon announces losses in the first quarter of 2022, while increasing revenues

Compared to the beginning of 2021, Amazon has been able to score a further 7% revenue increase. It then comes to the huge quarterly figure of 116.44 billion dollars. A gigantic number, but in line with the forecasts of Amazon analysts who were aiming for revenues between 112 and 117 billion dollars.

However, the group ended with one net loss of $ 3.84 billion compared to last year’s profit for the same period, which was $ 8.11 billion. Part of this negative outcome stems from the extraordinary honor of a whopping 7.6 billion dollars deriving from the investment in Rivian Automotive. Amazon invested in the electric van company before it entered the stock market, where it still performed poorly. With peaks of 180 dollars per share but with a value of up to 32 dollars per share.

The net loss per share was $ 7.56. Also due to contingent factors such as the physiological decline in online purchases after the reopening of many stores around the world following the various lockdowns. In addition, the increase in the cost of fuel has had a major impact. So much so that it forced Amazon to commission one 5% surcharge to marketplace resellers in the current quarter.

The CEO Andy Jassy he explained that “the pandemic and the war in Ukraine subsequently brought unusual growths and even challenges”. Which in this moment brought the company into the red for the quarter, with the stock value falling 11% before Wall Street closed yesterday.

The costs to the company are increasing by a great dealo and while revenues will still increase for the current quarter from 3% to 7% according to analysts, operating profit may still suffer. We will keep you informed about it.

Published by
Walker Ronnie

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