Amazon reported its first quarterly loss since 2015. The online retailer and Intel both issued forecasts that missed the mark.
Shares of both companies fell in the after-hours session and will have an impact on Friday morning's trading.
Amazon was stalled by the COVID-19 pandemic as online shopping slowed, and the company had a huge write-down of its investment in an electric vehicle startup.Amazon reported a loss of $3.84 billion, or $7.56 a share. A year ago, it reported a profit of $8.1 billion, or $15.79 a share, for the first quarter. Wall Street analysts expected a profit of $8.35 a share in the latest quarter, according to FactSet.The red ink in Amazon's report came mostly from the company's accounting for a $7.
"The cost to ship in overseas containers more than doubled compared to pre-pandemic rates. And the cost of fuel is approximately 1.5 times higher than it was even a year ago," said CFO Brian Olsavsky in the earnings conference call. "Combined with the year-over-year increases in wage inflation, these inflationary pressures have added approximately $2 billion of incremental costs when compared to last year.
Revenue rose 7% to $116.44 billion, compared with $108.52 billion in first quarter 2021, representing the company’s sixth consecutive quarter of revenue topping $100 billion.
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