Amazon closed the first quarter with a loss of $3.8 billion, with revenue rising 7% to 116.4 billion, just below expectations of analysts who bet $116.43 billion. For the second quarter, Amazon estimates 116-121 billion, less than the 125 billion the market had expected. Based on this data, Amazon shares lost as much as 10% in after-hours trading on Wall Street.
Heavy investment in Rivian
Amazon’s quarterly red is partly related to the $7.6 billion loss of its investment in Rivian, the electric car company that lost more than half its value in the first three months of the year. In the first quarter, Amazon saw online sales fall 3.3% to 51.13 billion, while sales in physical stores rose 17% to 4.59 billion.. Amazon Web Service revenue rose 37% to $18.44 billion, beating analyst expectations. Sales in North America were also better than expected, rising 7.6% to 69.24 billion.