Amazon, the stock collapses: a net loss of 3.8 billion due to Rivian

The Amazon title literally collapsed after i financial results of the first quarter of 2022 in which the company recorded a net loss of $ 3.8 billion, the first since 2015.

Yesterday was the worst trading day since July 2006 according to CNBCson of unfulfilled estimates and forecasts that did not convince Wall Street. The exit from the pandemic, a golden age for e-commerce, also bites the ankles of the company founded by Jeff Bezos, which is growing at a pace that analysts judge too slow.

The company increased net sales by 7% to $ 116 billion compared to last year (when sales rose 44%), while operating profit contracted to 3.7 billion compared to 8.9 a year ago. As written at the beginning, Amazon recorded a net loss of 3.8 billion when, in Q1 2021, it recorded a profit of 8.1 billion dollars.

Andy Jassy, ​​CEO of Amazon

The investment in the Rivian electric vehicle company largely ditched the accounts. The collapse of Rivian shares of more than 50% recorded in the quarter (-80% from the highs of November) weighed heavily on the numbers of Amazon, from whose investment the company recorded a loss of 7.6 billion dollars. Amazon owns an 18% stake in Rivian. Ford, also strong with a 12% stake in Rivian, posted a loss of $ 5.4 billion.

Rivian has signed a deal with Amazon to produce and deliver 100,000 delivery vehicles by 2030, but tough market conditions could lead it to disregard that deal: Rivian said last month that it expects to produce just 25,000 electric vehicles this year, half the number indicated to investors before the IPO launched late last year.

Increasing inflation, lower consumer demand for goods stored in warehouses and other expenditure items, such as fuel, weigh on Amazon’s accounts for 6 billion dollars.

Amazon expects net sales of between 116 and 121 billion for the second quarter, growth between 3% and 7%. The company expects an operating profit that could range from a deficit of one billion to a profit of 3 billion compared to the 7.7 billion profit of the same period of 2021. Finally, Amazon confirmed that this year Prime Day has been moved to the third quarter: it will be held in July and not in June like last year.

“The pandemic and the subsequent war in Ukraine resulted unusual growth and challenges“said Andy Jassy, ​​CEO of Amazon.” With AWS growing 34% year over the past two years and 37% year over year in the first quarter, AWS has been instrumental in helping companies overcome the pandemic. and move most of their workloads to the cloud. Our Consumer business has grown 23% annually over the past two years, with extraordinary growth in 2020 of 39% year-over-year which necessitated doubling the size of our fulfillment network that we had built in Amazon’s first 25 years. , and to do it in just 24 months “.

“Today, as we are no longer chasing physical or personal capacity, our teams are focused on improved productivity and cost efficiency across our order fulfillment network. We know how to do it and we have already done it. This it may take some timeparticularly as we struggle against continued inflationary and supply chain pressures, but we see encouraging progress on a range of customer experience dimensions, including speed of delivery as we are now approaching levels not seen in months immediately. preceding the pandemic “.


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Amazon, the stock collapses: a net loss of 3.8 billion due to Rivian


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