Amazon, stock collapses: 3.8 billion net loss due to Rivian

The Amazon address Literally collapsed after me financial results From the first quarter of 2022 in which the company registered a A net loss of $3.8 billion, the first since 2015.

Yesterday was the worst day on the stock exchange since July 2006 according to CNBC, son of Unrealized estimates and expectations that did not convince Wall Street. And the exit from the pandemic, the golden age of e-commerce, is also biting the ankles of the company founded by Jeff Bezos, which is growing at a pace analysts see as too slow.

The company increased net sales by 7% to $116 billion compared to last year (when sales were up 44%), while operating profit shrunk to 3.7 billion compared to 8.9 a year ago. As initially written, Amazon recorded a net loss of $3.8 billion when in the first quarter of 2021 it reported a profit of $8.1 billion.

Andy Gacy, CEO of Amazon

Investing in electric vehicle company Rivian has largely wiped out the accounts. The collapse of Rivian shares of more than 50% recorded in the quarter (-80% from their highs in November) significantly affected the numbers of Amazon, in which the company recorded an investment A loss of $7.6 billion. Amazon owns an 18% stake in Rivian. Ford, which also strongly holds a 12% stake in Rivian, reported a loss of $5.4 billion.

Rivian It has signed a deal with Amazon to produce and deliver 100,000 delivery vehicles by 2030, but tough market conditions could force it to ignore the deal: Rivian said last month that And it expects to produce only 25,000 electric cars this year, half of the indicated number Investors ahead of the IPO late last year.

Increased inflation, lower consumer demand for goods stored in warehouses and other spending items, such as fuel, affect Amazon’s $6 billion accounts.

Amazon expects net sales of between 116 and 121 billion for the second quarter, with growth of between 3% and 7%. The company expects an operating profit that could range from a deficit of $1 billion to a profit of $3 billion compared to a profit of 7.7 billion for the same period in 2021. Finally, Amazon confirmed that This year’s Prime Day has been moved to the third quarter: it will take place in July, not in June like last year.

The result of the epidemic and the subsequent war in Ukraine Unusual growth and challengesAndy Gacy, CEO of Amazon. “With AWS growing 34% over the past two years and 37% year over year in the first quarter, AWS has been instrumental in helping businesses weather the pandemic. Workloads on the cloud. Our consumer business has grown 23% annually over the past two years, With an extraordinary growth in 2020 of 39% YoY necessitating a doubling of the size of the fulfillment network we built in our first 25 years of Amazon. In just 24 months.”

“Today, since we no longer pursue physical or personal abilities, our teams focus on them Improve productivity and cost efficiency across our order fulfillment network. We know how to do it and we have already done it. This is amazing It may take some time, particularly as we struggle against persistent inflationary and supply chain pressures, but we see encouraging progress in a range of customer experience dimensions, including speed of delivery as we are now approaching levels not seen in months right away. before the epidemic.

Leave a Comment