February 3, 2023

Amazon stock plunges as company reports nearly $4 billion loss

2 min read

The tech giant said on Thursday that it had a net loss of 3. 3.8 billion for the quarter ended March 31, a sharp decline in revenue compared to the same period last year, when it posted a profit of 8. 8.1 billion. Was That was a significant drop in profits from the 4.4 billion that analysts had predicted in the Refinitiv survey.

The company attributed the loss to آ 7.6 billion in investments in electric automaker Rivian Automotive.

Amazon (AMZN) Shares plunged nearly 10% in after-hours trading.

“The epidemic in Ukraine and the ensuing war have brought extraordinary growth and challenges,” Amazon CEO Andy Jesse said in a statement.

Amazon’s total revenue rose 7% to 11 116.4 billion over the same period last year, slightly short of analysts’ forecasts, but less than 9% growth in the last months of last year. The company predicts that revenue growth will slow further in the next quarter, with growth expected between 3% and 7%.

Jesse cited Amazon’s impressive growth in its consumer business during the epidemic and the company’s complementary network “doubling” over the past two years.

“Today, since we are no longer pursuing physical or staff capacity, our teams are focused on improving productivity and cost efficiency across the entire network,” he added. “It may take some time, especially as we work through ongoing inflation and supply chain pressures, but we see encouraging progress on many aspects of the customer experience.”

Amazon’s revenue was affected as the company faced pressure from its warehouse employees on issues such as pay and working conditions. Workers at the Staten Island, New York warehouse vote to form an e-commerce company. First American Labor Union Since Amazon earlier this month AppealedDemand for full vote dowry.

The election of a separate Amazon Union in Bassimer, Alabama also ended recently with the results very close.

Both union efforts have been fueled by workers ‘frustration with the treatment of Amazon workers during epidemics and have been encouraged by increased national attention to racial justice issues and workers’ rights.

Amazon later announced that it would be holding one. Ethnic equity audit Led by former U.S. Attorney General Loretta Lynch.

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