Shares of Amazon fell to a two-year low as shares fell 12 percent on Friday morning after the company reported its first quarter results yesterday. The company reported a loss of $ 3.84 billion, or $ 7.56 per share, in 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 that it expects revenue of between $ 116 billion and $ 121 billion in the second quarter, which will miss analysts’ average estimate of $ 125.5 billion, according to CNBC. Amazon also reported a loss of $ 7.6 billion from its investment in electric vehicle maker Rivian.
In a statement for the quarterly results, Amazon CEO Andy Jesse said the company is focused on improving productivity and cost efficiency, but that will take time as Amazon continues to cope with inflationary pressures and supply chain pressures.
“The pandemic and the ensuing war in Ukraine have brought extraordinary growth and challenges,” Jasi said. “Today, as we no longer pursue physical or personal capacity, our teams are fully focused on improving productivity and cost-effectiveness throughout our implementation network. We know how to do this and we have done it before. 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 customer experience dimensions, including delivery speed, as we are now approaching levels not seen in the months before the pandemic. in early 2020
Subscription services, which include Amazon Prime membership, grossed $ 8.4 billion for the quarter. In the last quarter, the company raised the price of Prime as its monthly fee rose from $ 12.99 to $ 14.99 and its annual membership rose from $ 119 to $ 139, an increase of 17%. The e-commerce giant said the reason for the increase was due to the continuing expansion of benefits for Prime members and rising salaries and transportation costs.
Amazon’s results come at a time when the company sees a growing impetus for unionization by its workforce. Earlier this month, workers at Amazon’s JFK8 implementation center voted in favor of unionization, marking a historic day in a tough battle. Following the news, Amazon said it was “disappointed” and appreciated [its] Workers at the Staten Island LDJ5 Sorting Center will now hold their own vote.
As part of its quarterly earnings report, Amazon also announced that Prime Day will be held in July this year in more than 20 countries. The company’s annual transaction event has changed over the last few years as it has been moved to October 2020 and then back to June 2021.
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