Toy market news

Amazon with net loss of almost 4 billion dollars

Amazon's start to the new year has been anything but successful and has left analysts reeling: The group's revenue rose seven percent to $116.4 billion. It's the weakest growth in about 20 years. Operating profit plummeted a significant 58 percent year-over-year to $3.7 billion in the first three months. The reason given was the "unusual challenges" posed not only by the pandemic but also by the Russian war against Ukraine, according to Group CEO Andy Jassy.

All told, the bottom line is a net loss of $3.8 billion - interrupting Amazon's years-long run of highs, as it's the first net quarterly loss the group has taken since 2015. A value correction of Amazon's stake in carmaker Rivian amounting to 7.6 billion dollars was to blame for this development.

The outlook for the current second quarter could also be better: Amazon expects revenues in a range between 116 billion and 121 billion dollars. This represents growth of between three and seven percent. In terms of operating profit, the company could even slip into the red according to the forecasts: Here, a figure of between minus one and plus three billion dollars is expected.  Investors were anything but enthusiastic. After the results were announced, the share price slipped by ten percent at times in after-hours trading.

Source: onlinehaendler-news.de