Amazon Earnings Disappoint... Shares Plunge Around 8% in After-Hours Trading

[Image source=Reuters Yonhap News]

[Asia Economy New York=Special Correspondent Joselgina] Amazon, the world's largest e-commerce company, announced on the 28th (local time) sales forecasts that fell short of market expectations, causing its stock to plunge about 8% in after-hours trading.

According to economic media CNBC, Amazon reported a first-quarter loss per share of $7.56 shortly after the market closed. This is a disappointing result compared to a net profit per share of $15.79 a year ago. The company recorded a net loss of $3.8 billion due to a $7.6 billion impairment loss from investments including Rivian.

First-quarter sales reached $116.44 billion, slightly exceeding Wall Street's estimate of $116.3 billion. However, Amazon forecasted second-quarter sales to be between $116 billion and $121 billion, which is far below analysts' expectations of $125.5 billion.

Due to the disappointing performance and sales outlook, market disappointment poured in, and Amazon's stock is currently showing a decline of about 8% in after-hours trading.

Andy Jassy, Amazon's Chief Executive Officer (CEO), stated, "The pandemic and the war in Ukraine have brought unprecedented growth and challenges," adding, "We are experiencing ongoing inflation and supply chain pressures."

This content was produced with the assistance of AI translation services.