Amazon reported a significant loss in the first three months of the year sending the company’s stock plunging.
The net loss of $3.8 billion was a sharp drop compared to last year’s profits of $8.1 billion in the same period and also too far from the $4.4 billion profit forecasted by analysts. Poor results from electric carmaker Rivian dragged the retail giant.
“The pandemic and subsequent war in Ukraine have brought unusual growth and challenges,” Amazon CEO Andy Jassy said in a statement. “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,” Jassy noted.
Amazon’s overall revenue grew 7%, compared to a 44% increase in the same period last year. This was the company’s slowest growth rate in more than two decades.
Shares of Rivian plummeted by more than 50% in the first three months of 2022, after the company’s value skyrocketed after going public.
The EV manufacturer, which is included in Amazon’s plans to go green, cut by half electric trucks and SUV production announced last year in its IPO roadshow.
Just like many other companies in the sector, the retail giant said macroeconomic turmoil from the war in Ukraine, persisting supply chain problems and historic inflation rates are having an impact on sales.