After the seemingly limitless growth during the corona pandemic, Amazon is left with a hangover. The tech company posted a quarterly loss for the first time in seven years. The stock plunges more than ten percent.
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After the seemingly limitless growth during the corona pandemic, Amazon
with a hangover. For the first time since 2015, the e-commerce giant had to write red numbers in the tables. The net loss of 3.8 billion dollars was largely explained by the share in Rivian, the producer of electric cars. It lost half of its stock market value in the first quarter, leading to a $7.6 billion write-down at Amazon. Higher wages due to a tight US labor market and wage inflation also played a role.
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Operationally, not everything runs smoothly at ‘the everything store’. In the first quarter, Amazon still performed within expectations with a turnover of $116 billion. That is an increase of 7 percent compared to a year earlier, but it is the slowest sales growth since the dotcom crisis in 2001. A year ago, Amazon was able to present a first-quarter growth of 44 percent.
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Investors were particularly dissatisfied with the outlook for the second quarter. Amazon expects to generate revenues between $116 and $121 billion. That is a modest growth of between 3 and 7 percent and less than analysts had expected. They counted on 125.5 billion until Thursday. At the start of trading Friday, the share plunged more than 10 percent.
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