Amazon reports close to $4 billion in losses, leading to Friday stock plunge
The company says inflation, increased fuel costs, and labor issues led to an additional $2 billion in spending relative to last year.
Amazon has reported a first quarter loss of $3.8 billion, which has resulted in a stock price decline Friday morning by more than 12%.
The conglomerate on Thursday reported the multi-billion-dollar loss for the first quarter, which covers January through March, and marks a remarkable turnabout from its reported $8.1 billion profit in the first quarter of 2021.
Amazon is attributed this quarter's loss to a $7.6 billion loss from its investment in electric car maker Rivian Automotive, which saw its stock plummet more than 75% since its November 2021 IPO.
Amazon CEO Andy Jassy says COVID-19 pandemic and ongoing war in Ukraine "have brought unusual growth and challenges."
He also said: "Today, as we're no longer chasing physical or staffing capacity, our teams are squarely focused on improving productivity and cost efficiencies throughout our fulfillment network.
"This may take some time, particularly as we work through ongoing inflationary and supply chain pressures, but we see encouraging progress on a number of customer experience dimensions."
Amazon's chief financial officer, Brian Oslavsky, said increased inflation and fuel prices have added about $2 billion in costs to the company compared to last year.
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