Amazon disclosed the financial results of the first quarter 2022 and one of the most striking budget items concerns the loss of $ 3.8 billionin addition to slowing of the pace of growth after record quarters during the pandemic. It is a loss that Amazon traces back to the investments in Rivian Automotive which resulted in non-operational spending of $ 7.6 billion. The performance of the shares of the company engaged in the development of electric trucks, in which Amazon invested before it was listed on the stock exchange, also affected the financial results.
But to determine what in fact is the Amazon’s first budget loss since 2015 it is not just Rivian but the combination of two events that continue to shake the world: the pandemic and the war in Ukraine. In the first case it would be more correct to speak of post-acute effects of the pandemic: With the’easing of restrictive measures, consumers are returning to physical stores and the record growth in online sales during various lockdowns inevitably fades. There Russia-Ukraine war creates a climate of international instability which affects the entire chain of goods (from production to transport).
A situation that Amazon CEO Andy Jessy summarizes as follows: The pandemic and subsequent war in Ukraine brought unusual growth and challenges. Given the circumstances, it is unlikely that marked growth will soon return to characterize the financial statements of the Company which for the second quarter foresees a possible further loss of 1 billion dollars or at best a net income of 3 billion dollars. To have a benchmark in the second quarter of 2021, net income was $ 7.7 billion.
Results that for now do not convince the stock markets, despite the solid figure of sales that in Q1 2022 with 116.4 billion dollars increased by 7% on an annual basis. In after-hours trading, Amazon’s stock lost nearly 9%.