Amazon stock plunges to two-year low following first-quarter loss – By Aisha Malik (Techcrunch) / April 29, 2022
Amazon stock plunged to a two-year low as shares slid as much as 12% on Friday morning after the company reported its first-quarter results yesterday. The company reported a loss of $3.84 billion, or $7.56 a share, for the first quarter. In the first quarter of last year, Amazon reported a profit of $8.1 billion, or $15.79 a share.
The company said Thursday it projects revenue between $116 billion to $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 statement about the quarterly results, Amazon CEO Andy Jassy said the company is focused on improving productivity and cost efficiencies, but that this will take time as Amazon continues to address inflationary and supply chain pressures.
“The pandemic and subsequent war in Ukraine have brought unusual growth and challenges,” said Jassy. “Today, as we’re no longer chasing physical or staffing capacity, our teams are squarely focused on improving productivity and cost efficiencies throughout our fulfillment network. We know how to do this and have done it before. 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’re now approaching levels not seen since the months immediately preceding the pandemic in early 2020.”
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