Amazon shares fell to their lowest level in two years as shares fell as much as 12% on Friday morning after the company announced its decline First Quarter Results yesterday. The company reported a loss of $3.84 billion, or $7.56 per share, in the first quarter. In the first quarter of last year, Amazon mentioned $8.1 billion, or $15.79 per share.
The company said Thursday that it expects revenue of between $116 billion and $121 billion in the second quarter, which would lose the median analyst estimate of $125.5 billion, it was reported. by CNBC. Amazon also announced a $7.6 billion loss on its investment in electric car maker Rivian.
In a statement on quarterly results, Amazon CEO Andy Gacy said the company is focused on improving productivity and cost efficiency, but that this will take time as Amazon continues to address inflationary pressures and the supply chain.
“The pandemic and subsequent war in Ukraine brought extraordinary growth and challenges,” Gacy said. “Today, since we are no longer chasing physical capabilities or personnel, our teams are focused squarely on improving productivity and cost effectiveness across our fulfillment network. We know how to do this and we’ve done it before. This can take some time, especially as we work through Ongoing inflationary pressures and the supply chain, but we see encouraging progress on a number of customer experience dimensions, including delivery speed performance as we are now approaching levels not seen since the months immediately leading up to a pandemic in early 2020.”
Subscription services, which include Amazon Prime memberships, earned $8.4 billion for the quarter. Last quarter, the company Prime . price increaseMonthly fees increased from $12.99 to $14.99 and annual membership increased from $119 to $139, posting a 17% increase. The e-commerce giant said the reason for the increase was due to the continued expansion of key member benefits and higher wages and transportation costs.
Amazon’s results come at a time when the company is seeing a growing push toward unionization from its workforce. Earlier this month, employees of JFK8 Amazon fulfillment center Vote for union unification, On the occasion of a historic day in the fierce battle. After the news, Amazon said it was “disappointed” and “rating [its] and options.” Workers at the LDJ5 Screening Center on Staten Island are Currently set to hold their vote.
As part of its quarterly earnings report, Amazon also announced that Prime Day will be held in July of this year in more than 20 countries. The company’s annual deal event has changed over the past few years, being moved to October of 2020 and then moved back to June in 2021.