Weak Sales Forecast Impacts Amazon’s Stock Price

Posted on 04/28/2022


Amazon.com, Inc. unveiled revenue of US$ 116.4 billion for the quarter and earnings per share of US$ 7.56. Amazon Web Services generated US$ 18.44 billion for the quarter. Amazon is tying to manage inflationary pressures and supply chain disruptions. Amazon is also trying to combat unionization efforts across the U.S. Amazon shares were down 9.8% after-hours to US$ 2,610.

Amazon spent US$ 2.67 billion in stock buybacks for the first quarter of 2022. A US$ 10 billion stock buyback authorization was announced in March 2022.

Amazon’s spent its first 25 years building a very large fulfillment network, which appears to be paying off, despite headwinds.

Rivian
Amazon recorded a US$ 7.6 billion loss on its Rivian investment. This is after shares in the electric vehicle company lost more than half their value in the quarter. That resulted in a total net loss of US$ 3.8 billion.

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