Shares Drop 10% as Operating Income Decreases by 58% Year-On-Year

  • Amazon shares drop by 10% after reporting a net loss of $3.8bn (£3.02bn) in Q1 2022, first loss since 2015
  • Operating income decreased 58% year-on-year to $3.7bn (£2.94bn)
  • International sales dropped from $30.64bn (£24.41bn) to $28.75bn (£22.91bn)
  • North America saw a 7% increase in sales, AWS grew 37% year-on-year to $18.44bn (£14.69bn)
  • Physical stores sales increased 17%, online store sales declined by 3%
  • Financial guidance is subject to substantial uncertainty due to Covid, inflation, supply chain constraints and global events

Amazon shares have fallen by 10% following the company’s first loss since 2015, with a net loss of $3.8bn (£3.02bn) in Q1 2022 due to inflationary and supply chain pressures. The online retailer’s operating income decreased by 58% year-on-year from $8.9bn (£7.09bn) to $3.7bn (£2.94bn). International sales dropped from $30.64bn (£24.41bn) to $28.75bn (£22.91bn), while North America saw a 7% increase in sales. Amazon Web Services (AWS) grew by 37% year-on-year to $18.44bn (£14.69bn). Physical stores sales increased by 17%, but online store sales declined by 3%. The company’s financial guidance is subject to substantial uncertainty due to Covid, fluctuations in foreign exchange rates, changes in global economic conditions, inflation, labour market, and global supply chain constraints.

Factuality Level: 8
Factuality Justification: The article provides accurate and objective information about Amazon’s financial results for Q1 2022, including specific numbers and percentages, as well as comments from the CEO Andy Jassy on the company’s performance and challenges faced. It does not include any irrelevant or sensational details, nor does it present personal opinions as facts.
Noise Level: 3
Noise Justification: The article provides relevant information about Amazon’s financial results and includes comments from the CEO, but it could benefit from more analysis or context on the factors affecting the company’s performance and potential future implications.
Financial Relevance: Yes
Financial Markets Impacted: Amazon’s stock price
Financial Rating Justification: The article discusses Amazon’s financial performance, including a net loss and changes in sales figures, which can impact investor sentiment and the company’s stock price.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no extreme event mentioned in the article.

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