Amazon Reports First Loss Since 2015

Share Us

563
Amazon Reports First Loss Since 2015
29 Apr 2022
min read

News Synopsis

Amazon posted its first loss since 2015 as sales slowed, costs rose and investment in the electric car company Rivian wiped out profits.

Its revenues fell 7% to $116.4 billion in the first quarter. This is Amazon's slowest growth rate in nearly 20 years. In the same quarter of last year, Amazon's revenue increased 44% to $108.5 billion. Losses of $3.8 billion for the quarter were $8.1 billion in profits for the year-ago quarter.

The company warned that more losses could be incurred. This quarter, Amazon expects operating profit to range from a loss of $ 1 billion to a profit of $ 3 billion, compared to $ 7.7 billion in the second quarter of 2021.

Amazon's stake in electric car maker Rivian was primarily considered the cause of the loss. Amazon owns almost 20% of the company, losing $7.6 billion after the collapse of EV maker's shares, down more than 50%.

Amazon is one of Pandemic's biggest winners, with sales as consumers turn to online shopping and companies turn to Amazon Web Services (AWS) to run their businesses. AWS sales increased 37% this quarter.

Amazon isn't the only online retailer feeling change. According to Census Bureau data, the percentage of online retail purchases fell from 15.7% in the second quarter of 2020 to 12.9% in the last three months of 2021.

TWN In-Focus