Amazon on Thursday reported its first quarterly net loss since 2015: $3.8 billion in the three months ended March 31, after posting a profit of $8.1 billion in the same period last year. Analysts surveyed by Refinitiv had expected a profit of $4.4 billion, CNN reports. Amazon shares dropped about 10% in after-hours trading. "The pandemic and subsequent war in Ukraine have brought unusual growth and challenges," said Amazon CEO Andy Jassy in a statement.
Revenue for the quarter was $116.4 billion, 7% higher than the year before but down from 9% in the last quarter of 2021. The number of products sold by Amazon was unchanged from the year before, per the New York Times, while its expenses in selling products rose. The company blamed its loss in large part on the plunging value of one of its investments, Rivian Automotive. Shares in the electric truck maker have fallen 75% since its initial public offering in November.
Consumer spending on the sorts of products that sell well on Amazon declined in the quarter, the Commerce Department reported Thursday. The company has responded to rising costs by raising prices, including those for Prime memberships. It instituted a "fuel and inflation" fee for sellers whose inventory it handles, per the Times. Last month, the company compelled employees at several warehouses to take time off without pay because demand had fallen. "Our teams are squarely focused on improving productivity and cost efficiencies throughout our fulfillment network," Jassy's statement said. "We know how to do this and have done it before." (More Amazon stories.)
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