{"id":1457754,"date":"2022-04-29T08:29:44","date_gmt":"2022-04-29T12:29:44","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1457754"},"modified":"2022-04-29T08:29:46","modified_gmt":"2022-04-29T12:29:46","slug":"amazon-reports-nearly-4-billion-loss-in-first-quarter","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/amazon-reports-nearly-4-billion-loss-in-first-quarter\/","title":{"rendered":"Amazon Reports Nearly $4 Billion Loss in First Quarter"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"float:left\"><div class=\"counts mashsbcount\">18<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Famazon-reports-nearly-4-billion-loss-in-first-quarter%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1457754&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><div class=\"PageBuilder-col-full PageBuilder-col PageBuilder-article\"><\/div>\n<div class=\"PageBuilder-col-full PageBuilder-col PageBuilder-article\">\n<\/div>\n<div class=\"PageBuilder-col-9 PageBuilder-col PageBuilder-article\">\n<div class=\"RenderKeyPoints-keyPoints\" id=\"RegularArticle-KeyPoints-4\" data-test=\"keyPoints-1\" data-analytics=\"RegularArticle-keyPoints-4-1\">\n<div class=\"RenderKeyPoints-wrapper\">\n<div class=\"RenderKeyPoints-list\">\n<div>\n<div class=\"group\">\n<ul>\n<li>Amazon on Thursday gave a revenue forecast that trailed analysts&#8217;\u00a0estimates.<\/li>\n<li>Growth rates are at their slowest since the dot-com bust in 2001.<\/li>\n<li>The company recorded a $7.6 billion loss on its investment in electric vehicle maker\u00a0Rivian.<\/li>\n<\/ul>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"ArticleBody-articleBody\" id=\"RegularArticle-ArticleBody-5\" data-module=\"ArticleBody\" data-test=\"articleBody-2\" data-analytics=\"RegularArticle-articleBody-5-2\">\n<div class=\"group\">\n<p><a href=\"https:\/\/www.cnbc.com\/quotes\/AMZN\" target=\"_blank\" rel=\"noopener\">Amazon<\/a> shares dropped as much as 10% in extended trading on Thursday after the company <a href=\"https:\/\/www.businesswire.com\/news\/home\/20220427006081\/en\/Amazon.com-Announces-First-Quarter-Results\" target=\"_blank\" rel=\"noopener\">issued<\/a> a revenue forecast that trailed analysts&#8217;\u00a0estimates.<\/p>\n<p>Here&#8217;s how the company did:<\/p>\n<ul>\n<li><strong>Earnings:<\/strong> $7.38 per share, adjusted, vs. $8.36 expected, according to Refinitiv<\/li>\n<li><strong>Revenue:<\/strong> $116.44 billion vs. $116.3 billion expected, according to Refinitiv<\/li>\n<\/ul>\n<p>Here&#8217;s how other key Amazon segments did during the quarter:<\/p>\n<ul>\n<li><strong>Amazon Web Services:<\/strong> $ 18.44 billion vs. $18.27 billion expected, according to StreetAccount<\/li>\n<li><strong>Advertising:<\/strong> $7.88 billion vs. $8.17 billion expected, according to StreetAccount<\/li>\n<\/ul>\n<p>Amazon\u00a0<a href=\"https:\/\/www.cnbc.com\/2022\/04\/28\/amazon-takes-7point6-billion-loss-on-rivian-stake-from-q1-stock-plunge.html\">recorded a $7.6 billion loss<\/a> on its\u00a0<a href=\"https:\/\/www.cnbc.com\/quotes\/RIVN\" target=\"_blank\" rel=\"noopener\">Rivian<\/a>\u00a0investment after shares in the electric vehicle company lost more than half their value in the quarter. That resulted in a total net loss of $3.8 billion.<\/p>\n<p>Revenue at Amazon increased 7% during the first quarter, compared with 44% expansion in the year-ago period. It marks the slowest rate for any quarter since the dot-com bust in 2001 and the second straight period of single-digit growth.<\/p>\n<\/div>\n<div class=\"group\">\n<div class=\"RelatedContent-relatedContent\" id=\"RegularArticle-RelatedContent-1\">\n<div class=\"RelatedContent-container\">\n<div class=\"RelatedContent-nonCollapsibleContent\">\n<h2 class=\"RelatedContent-header\">Stock picks and investing trends from CNBC Pro:<\/h2>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"group\">\n<p>The second-quarter forecasts suggests growth could dip even further, to between 3% and 7% from a year earlier. Amazon\u00a0said it projects revenue this quarter of $116 billion to $121 billion, missing the $125.5 billion average analyst estimate, according to Refinitiv.<\/p>\n<p>Like <a href=\"https:\/\/www.cnbc.com\/quotes\/GOOGL\" target=\"_blank\" rel=\"noopener\">Google<\/a> and <a href=\"https:\/\/www.cnbc.com\/quotes\/FB\" target=\"_blank\" rel=\"noopener\">Facebook<\/a> earlier this week, Amazon is attributing much of the slowdown to macroeconomic conditions and Russia&#8217;s invasion of Ukraine.<\/p>\n<p>&#8220;The pandemic and subsequent war in Ukraine have brought unusual growth and challenges,&#8221; Amazon CEO Andy Jassy said in a statement. He added that the company is &#8220;squarely focused&#8221; on offsetting costs in its fulfillment network now that staffing and warehousing capacity are at normal levels.<\/p>\n<p>Amazon has been navigating a host of economic challenges, including rising inflation, higher fuel and labor costs, global supply chain snarls, and the ongoing pandemic. To offset some of those costs, Amazon <a href=\"https:\/\/www.cnbc.com\/2022\/04\/13\/amazon-slaps-us-sellers-with-5percent-fuel-and-inflation-surcharge.html\">earlier this month introduced<\/a> a 5% surcharge for some of its U.S. sellers, the first such fee in its history. And last quarter, Amazon <a href=\"https:\/\/www.cnbc.com\/2022\/02\/03\/amazon-increases-the-price-of-prime-nearly-17percent-to-139-per-year.html\">hiked the price<\/a> of its U.S. Prime membership for the first time in four years to $139 from $119.<\/p>\n<p>Profits are still taking a hit. The company&#8217;s operating margin, or the money that&#8217;s left after accounting for costs to run the business, dipped to 3.2% in the first quarter from 8.2% a year earlier.<\/p>\n<p>&#8220;This may take some time, particularly as we work through ongoing inflationary and supply chain pressures, but we see encouraging progress on a number of customer experience dimensions, including delivery speed performance as we&#8217;re now approaching levels not seen since the months immediately preceding the pandemic in early 2020,&#8221; Jassy said.<\/p>\n<p>Amazon and <a href=\"https:\/\/www.cnbc.com\/quotes\/AAPL\" target=\"_blank\" rel=\"noopener\">Apple<\/a>, which also <a href=\"https:\/\/www.cnbc.com\/2022\/04\/28\/apple-aapl-earnings-q2-2022.html\">reported results<\/a> on Thursday, are the last of the Big Tech class to update investors on their start to the year. So far it&#8217;s been a mixed bag, with ad-supported businesses struggling due in part to macroeconomic conditions and the war in Ukraine.<\/p>\n<p>Amazon is the latest company to join the pack in reporting disappointing ad revenue. Still, the segment grew 23% year over year, faster expansion than its ad peers. <a href=\"https:\/\/www.cnbc.com\/2022\/04\/26\/alphabet-to-report-q1-earnings-after-the-bell-tuesday.html\">Google&#8217;s ad revenue<\/a> increased 22%, slowed down by YouTube, which recorded weaker-than-expected growth of 14%. <a href=\"https:\/\/www.cnbc.com\/2022\/04\/27\/meta-fb-q1-2022-earnings.html\">Facebook&#8217;s ad revenue<\/a> rose by just 6.1%, the weakest expansion in the company&#8217;s 10-year history as a public company.<\/p>\n<p>Amazon&#8217;s cloud-computing unit continues to hum along, as the company fends off competition from <a href=\"https:\/\/www.cnbc.com\/quotes\/MSFT\" target=\"_blank\" rel=\"noopener\">Microsoft<\/a> and Google. Sales at Amazon Web Services <a href=\"https:\/\/www.cnbc.com\/2022\/04\/28\/aws-earnings-q1-2022.html\">increased<\/a> 36.5% from a year earlier to $18.44 billion, above the $18.27 billion projected by Wall Street.<\/p>\n<p>AWS generated 57% growth in operating income to $6.5 billion, while total operating income for Amazon fell to $3.7 billion from $8.9 billion a year ago. The Rivian markdown produced the company&#8217;s first net loss in a quarter since 2015.<\/p>\n<p>Amazon also confirmed Thursday that this year&#8217;s Prime Day will take place in July. Last year, Amazon held Prime Day in June. By moving the two-day discount event to the third quarter, it could potentially hurt year-over-year comparisons for revenue in the second quarter while boosting third-quarter results.<\/p>\n<p><em>This story is developing. Check back for updates.<\/em><\/p>\n<p><strong>WATCH:<\/strong> <a href=\"https:\/\/www.cnbc.com\/video\/2022\/04\/14\/amazon-ceo-andy-jassy-this-has-been-a-time-of-extraordinary-growth.html\">Amazon CEO Andy Jassy: This has been a time of extraordinary growth<\/a><\/p>\n<\/div>\n<\/div>\n<div class=\"WatchLiveRightRail-inline WatchLiveRightRail-container\" id=\"RegularArticle-WatchLiveRightRail-7\" data-test=\"watchLiveRightRail-4\" data-analytics=\"RegularArticle-watchLiveRightRail-7-4\">\n<div class=\"WatchLiveRightRail-contents\"><a href=\"https:\/\/www.cnbc.com\/live-tv\/\" class=\"WatchLiveRightRail-wlButton\">WATCH LIVE<img decoding=\"async\" src=\"denied:data:image\/svg+xml;base64,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\" class=\"WatchLiveRightRail-logo\" alt=\"logo\" \/><\/a><a href=\"https:\/\/www.cnbc.com\/live-tv\/\" class=\"WatchLiveRightRail-wlButtonMobile\">WATCH IN THE APP<\/a><\/div>\n<\/div>\n<\/div>\n<div class=\"PageBuilder-col-9 PageBuilder-col PageBuilder-article\"><\/div>\n<div class=\"PageBuilder-col-12 PageBuilder-col PageBuilder-article\">\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Amazon on Thursday gave a revenue forecast that trailed analysts&#8217;\u00a0estimates. Growth rates are at their slowest since the dot-com bust in 2001.<\/p>\n","protected":false},"author":498,"featured_media":2315279,"comment_status":"open","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[],"tags":[],"class_list":["post-1457754","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry"],"_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1457754","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/498"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1457754"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1457754\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2315279"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1457754"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1457754"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1457754"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}