Net loss includes $3.9bn valuation hit from electric vehicle start-up
- Amazon reports £1.6bn loss in Q2
- Includes a pre-tax valuation loss of $3.9bn (£3.2bn) from investment in Rivian Automotive
- Sales increased by 7% to £99.5bn compared to 2021
- Operating cash flow decreased by 40% to £29.2bn for the trailing twelve months
- Free cash flow decreased to an outflow of £19.3bn compared to inflow of £9.9bn in 2021
- CEO Andy Jassy highlights progress on controllable costs and Prime benefits
Amazon has reported a net loss of £1.6bn in its second quarter, down from a profit of £6.4bn in Q2 2021. This loss includes a pre-tax valuation loss of £3.2bn from Amazon’s investment in Rivian Automotive, an electric vehicle start-up. Despite a 7% increase in sales to £99.5bn compared with £92.8bn in 2021, the company’s operating cash flow decreased by 40% to £29.2bn for the trailing twelve months, compared to £48.7bn for the period ended 30 June 2021. The free cash flow also decreased to an outflow of £19.3bn compared to an inflow of £9.9bn in 2021. CEO Andy Jassy highlights progress on controllable costs and Prime benefits, including faster shipping speeds and exclusive access to NFL Thursday Night Football games starting 15 September.
Factuality Level: 8
Factuality Justification: The article provides accurate information about Amazon’s financial performance, including specific numbers and comparisons to previous quarters. It also includes a statement from CEO Andy Jassy regarding the company’s strategies and investments.
Noise Level: 3
Noise Justification: The article provides relevant information about Amazon’s financial performance and includes quotes from the CEO explaining their strategies to improve the company’s situation. It does not contain any irrelevant or misleading information, and it stays on topic without diving into unrelated territories.
Financial Relevance: Yes
Financial Markets Impacted: Amazon’s stock price may be impacted by the net loss and changes in foreign exchange rates
Financial Rating Justification: The article discusses Amazon’s financial performance, including a significant net loss, changes in sales, and operating cash flow, which are relevant to financial topics. It also mentions potential impacts on the company’s stock price due to these financial factors.
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.
www.retailsector.co.uk