Shares of Amazon fell as much as 9% in expanded trading on Thursday after the company issued a revenue forecast that left analysts’ estimates behind.
Here’s how the company did:
- Earnings: $ 7.38 per share, adjusted for expected $ 8.36, according to Refinitiv
- Revenue: $ 116.44 billion against the expected $ 116.3 billion, according to Refinitiv
Here’s how other key segments of Amazon did during the quarter:
- Amazon Web Services: $ 18.44 billion versus the expected $ 18.27 billion, according to StreetAccount
- Advertising: $ 7.88 billion against the expected $ 8.17 billion, according to StreetAccount
Amazon recorded a loss of $ 7.6 billion from its investment in Rivian after shares of the electric vehicle company lost more than half of their value in the quarter. This resulted in a total net loss of $ 3.8 billion.
Revenue increased 7% in the first quarter, the slowest quarter since the fall of Dotcom in 2001 and the second consecutive period of single-digit growth.
Amazon said it expects second-quarter revenue of $ 116 billion to $ 121 billion. Analysts forecast sales of $ 125.5 billion, according to Refinitiv. Forecasts for the second quarter suggest that growth may fall further, to between 3% and 7% from a year earlier.
Like Google and Facebook earlier this week, Amazon attributed much of the slowdown to macroeconomic conditions, such as rising inflation and Russia’s invasion of Ukraine.
“The pandemic and the ensuing war in Ukraine have brought extraordinary growth and challenges,” Amazon CEO Andy Jesse said in a statement. He added that the company is “squarely focused” on offsetting costs in its implementation network now that staff and warehousing capacity are at a normal level.
“This may take some time, especially as we work through the current pressures of inflation and the supply chain, but we are seeing encouraging progress on a number of dimensions of customer experience, including delivery speed, as we are now approaching levels not seen in recent months. . the pandemic in early 2020, “said Jesse.
Amazon and Apple, which also reported results on Thursday, are the latest in the Big Tech class to update investors earlier this year. So far, this has been a mixed situation, with advertising-supported businesses struggling in part over macroeconomic conditions and the war in Ukraine.
This story is evolving. Check again for updates.
WATCH: Amazon CEO Andy Jesse: It was a time of tremendous growth
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