Amazon.com Inc (NASDAQ:AMZN) stock is plummeting after hours following the release of its 1Q earnings that revealed the impact of the pandemic, labour shortages, unionization efforts and other challenges on the business.
The company reported a 7% increase in revenues, achieving $116.4 billion for 1Q 2022, compared to $108.5 billion in the same quarter last year, which was in line with analyst expectations.
However, the company reported a loss of $7.56 per share for 1Q 2022, compared to income of $15.79 per share in 1Q 2021.
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On this metric, the company fared slightly better than expected, with analysts predicting losses per share of $8.55.
The loss was also driven by a pre-tax valuation loss of $7.6 billion from Amazon's investment in Rivian Automotive Inc (NASDAQ:RIVN).
Revenues for Amazon Web Services (AWS) surpassed analyst expectations of $18.3 billion, coming in at $18.4 billion for the three months ended March 31, 2022, compared to $13.5 billion for the same period last year.
In a release, Amazon CEO Andy Jassy said that the company had faced “unusual growth and challenges” this quarter, specifically the pandemic and the war in Ukraine.
He noted the growth of AWS, which has grown 34% annually over the last two years and 37% year-over-year in the first quarter.
“AWS has been integral in helping companies weather the pandemic and move more their workloads into the cloud,” Jassy said.
Following the report, Amazon stock was down more than 8% in after hours trading.
Contact Emily at emily.jarvie@proactiveinvestors.com
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