Amazon disappoints with weak growth
Created: 04/28/2022, 23:48
Amazon disappointed investors.
© Patrick Pleul/dpa-Zentralbild/dpa
Business at the world's largest online retailer Amazon is surprisingly bad.
Seattle - Operating profit fell in the first quarter compared to the same period last year by 58 percent to 3.7 billion dollars (3.5 billion euros), as the group announced after the US stock market closed in Seattle.
Sales increased by seven percent to $ 116.4 billion - Amazon recorded the weakest growth in around two decades.
The pandemic and the war in Ukraine have led to "unusual challenges," said Amazon CEO Andy Jassy.
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The bottom line is that the group even suffered a net loss of 3.8 billion dollars, which was mainly due to a 7.6 billion dollar balance sheet value correction of a stake in the electric car manufacturer Rivian.
Nevertheless, investors reacted with shock and initially dropped Amazon's shares by around ten percent after the trading day.
The forecast for the current quarter was also disappointing.
Amazon announced revenue of between $116 billion and $121 billion, which would correspond to an increase of between three and seven percent year-on-year.
dpa
