Amazon stock plunges to two-year low after Q1 loss – TechCrunch
Shares of Amazon plunged to their lowest level in two years, with shares falling 12% on Friday morning after the company released its first quarter results yesterday. The company reported 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.
The company said Thursday it expects revenue of between $116 billion and $121 billion in the second quarter, which would miss analysts’ average estimate of $125.5 billion, as reported by CNBC. Amazon also reported a $7.6 billion loss on its investment in electric vehicle maker Rivian.
In a quarterly earnings statement, Amazon CEO Andy Jassy said the company was focused on improving productivity and profitability, but that would take time as Amazon continues to face challenges. inflationary and supply chain pressures.
“The pandemic and subsequent war in Ukraine has brought about unusual growth and challenges,” Jassy said. “Today, when we are no longer looking for physical capacity or staffing, our teams are fully focused on improving productivity and profitability across our fulfillment network. We know how to do this and we have done it before. It may take some time, particularly as we face continued inflationary and supply chain pressures, but we are seeing encouraging progress on a number of customer experience dimensions, including speed of delivery, as we are now approaching levels not seen since the months immediately preceding the pandemic in early 2020.
Subscription services, which includes Amazon Prime memberships, brought in $8.4 billion for the quarter. Last quarter, the company increased the price of Prime, with the monthly fee rising from $12.99 to $14.99 and the annual subscription from $119 to $139, marking a 17% increase. The e-commerce giant had said the reason for the increase was due to the continued expansion of Prime member benefits and rising wages and transportation costs.
Amazon’s results come at a time when the company is seeing a growing push to unionize its workforce. Earlier this month, workers at Amazon’s JFK8 fulfillment center voted to unionize, marking a historic day in an uphill battle. Following the news, Amazon said it was “disappointed” and “assessed [its] choice. Workers at the LDJ5 sorting center on Staten Island are currently required to hold their own vote.
As part of its quarterly earnings report, Amazon also announced that Prime Day will take place in July this year in more than 20 countries. The company’s annual deal event has changed in recent years, as it was moved to October for 2020 and then moved up to June in 2021.