Amazon posts first unprofitable quarter since 2015 with a loss of $3.8 BILLION and cuts its guidance, causing shares to plunge 10% as lockdown lifts hurt online shopping sales
Amazon on Thursday forecast current-quarter sales below Wall Street estimates as a return to post-pandemic normalcy reduces demand for online shopping.
Shares of the company fell 10 percent in extended trading after the company also reported a net loss on its investment in Rivian Automotive.
The world’s largest online retailer forecast net sales of between $116 billion and $121 billion for the second quarter. According to Refinitiv IBES data, analysts had expected $125.48 billion.
According to Refinitiv’s IBES data, first-quarter net sales were $116.4 billion, compared to analysts’ expectations of $116.3 billion.
Net loss was $3.8 billion, or $7.56 per share, compared to earnings of $8.1 billion, or $15.79 per share, a year earlier.
Amazon founder and chairman Jeff Bezos is seen above.
“The pandemic and subsequent war in Ukraine has brought unusual growth and challenges,” Amazon CEO Andy Jassy said in a statement.
“No longer looking for physical or human capacity, our teams are fully focused on improving productivity and cost efficiencies across our fulfillment network. We know how to do it and we’ve done it before,” he said
“This may take time, particularly as we work our way through ongoing inflation and supply chain pressures, but we are seeing encouraging progress across a number of customer experience dimensions, including delivery speed performance, as we now approach levels that have not been seen since the The pandemic at the beginning of 2020 was not reached in the months immediately preceding.’
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