Your capital is at risk when you invest. Never risk more than you can afford to lose. Financial products are complex instruments and come with a high risk of losing money.

Amazon earnings are out, here are the numbers

April 28th, 2022 -

About 3 Mins
Dotted Circle
Dotted Circle Alt2x

Amazon shares were off 10% from their close in the after-hours as the company reported a first quarter loss of $7.56 which missed a consensus expected EPS of $8.40. Net sales met estimates, coming in at $116.4 billion. North America and AWS (cloud computing) were the two bright spots for the top line, while subscription revenue from Amazon Prime, advertising, and online store sales outside of the U.S. were generally lower than expected.

Operating margins are feeling the pressure due to higher inflation, specifically in shipping expenses. Worldwide shipping costs have increased by 14% year over year for the company, due to a sharp rise in fuel and wage expenses. Given that Amazon’s e-commerce business was already a low-margin enterprise, higher expenses are going to be hard to offset going forward.

Furthermore, the company already increased Prime subscription prices and added a fuel surcharge for its third-party online merchants in the first quarter. Despite these developments, the company projected weaker than expected numbers for the third quarter. The company sees 2Q net sales at $119bn at the midpoint, versus an estimate of $125bn.

Additionally, the company projected a second quarter loss as well. On a positive note, Prime Day is expected in the third quarter this year, while the investments Amazon has made into its supply chain could start bearing fruit going into the holiday season. Lastly, despite the large first quarter loss reported by the company, the balance sheet remains solid, with cash topping $36 billion as of quarter end.

This content is provided for general information purposes only and is not to be taken as investment advice nor as a recommendation for any security, investment strategy or investment account.
Share

Read more latest market news

Sharpen your trading and investing skills with our regular deep dives into global financial markets, trends, insights and strategies.

Will Nvidia Surpass Apple? The Stock Is Climbing Higher!

Nvidia’s stock is nearing a new all-time high, with shares rising 3.2% to $139.02 in early trading, while the Nasdaq...

October 17th, 2024 -

About 2 Mins

The Fed Cuts Interest Rates By Half A Percentage Point! Investors Are Still Worried.

The Federal Reserve recently cut interest rates by half a point instead of the expected quarter-point. This move left investors...

September 19th, 2024 -

About 2 Mins

Palantir Is Added To The S&P 500! Positive News For The Stock

Palantir Technologies (PLTR) has sparked debate on Wall Street, but its inclusion in the S&P 500 has energized supporters. After...

September 10th, 2024 -

About 2 Mins

Sign up for a free demo

Select a platform

Sign up for a free demo

Please confirm that you are over 18 years old to continue

Temporary Slide Menu