Investors are responding with cuts in annual invoices from Amazon.
The Amazon of electronic commerce fell more than un 4% on the market outside from time to $106, minutes after announcing a loss of 1TP4Q2.7 billion in 2022.
The drop contrasted with a rise in the 7.3% in this Thursday session: The post-Nasdaq trade show had its best day in three months. The capitalization of the company reached 1.06 million, after having lost around 20% of its value.
The red numbers are slightly lower than the red ones. 3,000 million with which it closed September, compared to the 33.364 million registered in the same period of the previous year.
These results are mainly due to the collapse of the vehicle manufacturer's stock market electric Rivian, in which it has participated since 2019.
As published this Thursday by the company founded by Jeff Bezos, a debt of 12,700 euros will suffer its first loss year complete since 2014.
Meanwhile, net sales increased by 9 percent to $ 514 billion. Currency exchange rates are also supported by group accounts that generate income from 15,500 million euros.
Geographically, North America achieved a increase from 13 % in sales compared to other international companies with 1TP4Q118 billion in sales. Exchange effects are not included. This game has increased a 4%.
At the same time, its cloud platform, AWS, has a weight of 80 100 million dollars, either almost 30 % more.
In terms of operating profit, it fell almost a 50% up to 12,200 million. He blamed recorded losses of 2.8 billion in North America versus 7.7 billion in the rest of the world, while AWS could close in positive territory with 22.8 billion from 18.5 billion in 2021.
In the fourth quarter, net profit fell to 300 million, 98% less than in 2021.
including the impact of the fall of $2.3 billion from Rivian as sales increase 9% to $ 150 billion.
The company founded by Jeff Bezos points to a negative impact of 5,000 million by exchange rates, so the value would be 12% not including this factor.
The economic slowdown was also felt in revenues, which fell from 3,500 million in it fourth quarter of 2021 to 2.7 billion registered at the end of December 2022.
The environment inflation hurt Amazon, as it faced rising costs, falling demand, and damages.
The company plans to lay off about 6% of its workforce, or about 18,000 employees, after the high volume of contracts he made after the Covid demand boom.
In a statement, the Amazon CEO, Andy Jassi, acknowledged that the economy is going through a period of uncertainty in the short term.
But he is optimistic about the company's long-term capacity and the segment is expected to see growth. "significant" during the period.
Next year is in the middle of the e-commerce consolidation.
Looking to 2023, he expects the company register 4,000 million dollars in operating profit with growth in income between 4 and 8%.
Conclution
The stock market crash that followed Amazon's loss of more than $2.7 billion in the Rivian fiasco has been devastating to both investors and companies.
The effects have been felt around the world, with US markets taking a significant hit to their already fragile state.
However, analysts are hopeful that the recovery is on the horizon.
The stock market has taken its fair share of losses lately, but the most recent of Amazon is particularly worrisome because it could indicate a greater tendency of instability in the industry.
Despite this, many experts believe there is still room for optimism as we look ahead to a eventual recovery period.
companies like Amazon are working hard to make amends and regain investor confidence by taking measures like restore lost principal and implement new strategies to prevent incidents such as this in the future.