Amazon sees shares plunge amid disappointing revenue outlook
Company also took hit on investment in electric car manufacturer.
Amazon on Friday saw its shares plunge by as much as 15%, the worst day for the company in years as it offered a revenue forecast that fell short of expectations.
Shares in the company have been declining since around the beginning of April but saw a marked drop on Friday, with the dip coming after the company's financial estimates for the next quarter came beneath those of industry analysts.
Amazon projected net sales of as low as $116 billion in the second quarter of 2022, a number significantly below the $125 billion average from industry analysts.
The online retail giant has been struggling to manage a rapidly shifting market landscape after two years of the COVID-19 pandemic. At the outset of the pandemic, when in-person retail nearly ceased completely throughout much of the world, Amazon enjoyed sky-high revenues and profits due to most consumer activity shifting online.
The reopening of much of the world's economy over the last year has seen Amazon's revenue and commerce drop sharply, creating additional headaches for the company due to the oversized staff levels they took on to manage the earlier increase in buying.
A disappointing investment in electric car maker Rivian has also brought down the company's earnings. The car manufacturer Ford also took losses on its Rivian investment as well.