Amazon announces nearly $4 billion loss and lower inventory

E-commerce giant Amazon has suffered a significant decline in its stock value after a recently announced loss in the first quarter of 2022 of $3.8 billion. On Friday afternoon, Amazon shares were down more than 15% in intraday trading.

CNBC reports that Amazon shares fell 15% on Friday following a poor revenue outlook and steep losses reported in the first quarter of 2022. The company expects revenue between $116 billion and $121 billion in the second quarter. , behind the 125.5 dollars. billion analysts’ average estimate. The second-quarter revenue growth forecast calls for a decline in the three to seven percent range from a year earlier, another slowdown from a year earlier when revenue grew seven percent.

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Amazon lost $3.8 billion in the first quarter, compared with a profit of $8.1 billion in the same time last year. Amazon’s investment in electric SUV firm Rivian has reportedly weighed heavily on its earnings. Analysts at William Blair, who have an outperform rating on Amazon shares, said in a note to clients on Thursday:

While sales fell short of expectations by just $6 million, the headline was the company’s first quarterly loss since 2015, with a loss per share of $7.56, nearly $16.00 lower. than Street’s earnings-per-share expectations.

Under the hood, the company reported an $8 billion pretax loss related to its investment in Rivian Automotive. Recall that the company reported a profit of $12 billion in the previous quarter related to investment. We estimate the company’s earnings per share, excluding investment-related loss, to be around $3.40, still 60% below consensus as the company continues to face shipping headwinds , labor, excess capacity and difficult comparisons with the previous year.

Truist Securities analyst Youssef Squali, however, remains positive about the company’s future, saying, “We should start to see significant improvement in labor efficiency and fixed costs in the future. 2H22, starting with Prime Day in July, then into 4Q22, which is seasonally strong.”

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Lucas Nolan is a reporter for Breitbart News covering free speech and online censorship issues. Follow him on Twitter @LucasNolan or contact by secure email at [email protected]


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