Amazon made headlines today because its shares fell more than 10% in pre-market trading. This came after the tech giant reported its first loss in seven years in the first quarter.
“The e-commerce giant was down 8.49% to $2,646.41 in the pre-market session on Friday., around 10 AM (Argentine time). If the drop continues when the market opens, Amazon will lose about $130 billion of market value,” he said. Business Insider.
The bottom line was hurt by a $7.6 billion drop in the value of its stake in electric car maker Rivian, whose shares have plunged nearly 70% this year, the publication noted.
“Today, as we are no longer chasing physical or headcount capacity, our teams focus squarely on improving productivity and cost efficiency. across our fulfillment network,” Amazon CEO Andy Jassy said in a statement released with earnings results.
The executive also said there was a high level of uncertainty, with the war in Ukraine, inflation and supply chain issues likely to put pressure on the company in the second quarter.