Today is an unusually busy Thursday in the world of tech and finance as multiple global giants have been sharing their recent earnings reports. Amazon (AMZN), retail giant and cloud service provider, posted its Q1 2022 earnings report this afternoon and revealed that an earlier investment in electric vehicle builder Rivian (RIVN) was a major contributor to the losses on last quarter’s ledger.
As per Amazon’s earnings report, net losses were $7.6 billion in the first quarter, a sizeable increase over the same period in 2021 ($3.8 billion in losses). Amazon attributes the increase in loss to its previous investment in Rivian Automotive which was classified as a non-operating expense.
While its Q1 2022 numbers aren’t exactly great, the future outlook is also concerning for potential investors and market analysts. Amazon’s revenue guidance for Q2 2022 was also disclosed in the report and falls short of industry insider expectations. The company expects revenue to land just a bit short of $120 billion in Q2 2022, while previous analyst expectations were in the $125 billion range.
The company also explained the difficulties it faced this past quarter with ongoing CVOID-19 logistical challenges, as well as the situation playing out in Ukraine. It remains bullish on its AWS business moving forward, despite the lower-than-expected revenue guidance. Amazon (AMZN) stock was also down in after-hours trading following the release of its Q1 2022 earnings report.
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