Amazon shares fall to two-year low after first-quarter losses

- Advertisement -


Amazon shares fell to a two-year low as the stock fell 12% on Friday morning after the company announced its first quarter results yesterday. The company posted a loss of $3.84 billion, or $7.56 per share, for the first quarter. In the first quarter of last year, Amazon reported earnings of $8.1 billion, or $15.79 per share.

- Advertisement -

On Thursday, the company said it forecast revenue of between $116 billion and $121 billion in the second quarter, falling short of analysts’ median estimate of $125.5 billion. by CNBC. Amazon also posted a $7.6 billion loss on its investment in electric vehicle maker Rivian.

- Advertisement -

In a quarterly results statement, Amazon CEO Andy Jassi said the company is focused on improving productivity and cost efficiency, but that it will take time as Amazon continues to grapple with inflation and supply chain pressures.

“The pandemic and the subsequent war in Ukraine have brought unusual growth and challenges,” Yassy said. “Today, when we are no longer chasing physical or human resources, our teams are fully focused on improving productivity and cost efficiency across our entire fulfillment network. We know how to do it and have done it before. This may take some time, especially with ongoing inflation and supply chain pressures, but we are seeing encouraging progress on a number of aspects of customer service, including delivery speed, as we now approach levels not seen since the months immediately leading up to the pandemic in early 2020 of the year”.

- Advertisement -

Subscription services that include Amazon Prime membership generated $8.4 billion for the quarter. The company last quarter raised the price of Prime, as the monthly fee went up from $12.99 to $14.99 and the annual membership went up from $119 to $139, a 17% increase. The e-commerce giant said the reason for the increase is due to the continued expansion of benefits for Prime members and rising wages and travel costs.

Amazon’s results come at a time when the company is seeing a growing need for employee unionization. Earlier this month, Amazon JFK8 Fulfillment Center workers voted to merge, marking a historic day in a hard-fought battle. Following the news, Amazon said it was “disappointed” and “appreciates [its] options.” Workers at LDJ5 sorting center in Staten Island currently set to hold their own vote.

As part of its quarterly earnings report, Amazon also announced that Prime Day will take place this July in more than 20 countries. The company’s annual event has shifted over the past few years, being rescheduled to October 2020 and then rescheduled again to June 2021.


Credit: techcrunch.com /

- Advertisement -

Stay on top - Get the daily news in your inbox

DMCA / Correction Notice

Recent Articles

Related Stories

Stay on top - Get the daily news in your inbox