Amazon’s stock plummeted after the company reported on Thursday slowing growth and higher costs in its latest quarter and offered a disappointing revenue outlook.
Highlights
- Amazon reported a net loss of $3.8 billion for the quarter ended March 31, a sharp drop from the same period last year.
- It was also a big miss from the $4.4 billion profit that analysts surveyed by Refinitiv had forecast.
- The tech giant attributed the loss largely to a $7.6 billion loss from its investment in electric automaker Rivian Automotive.
- Rivian, into which Amazon led a $700 million investment in 2019, has seen its stock plummet more than 75% since its blockbuster November 2021 IPO.
- The company forecast that revenue growth would slow further next quarter, anticipating a growth rate of between 3% and 7%.