Amazon turns over half a billion dollars, but loses 2.722 billion dollars
US e-commerce giant Amazon on Thursday announced a loss of $2.722 billion in 2022 compared to the more than $33 billion it earned the previous year, dragged down by its investment in electric car company Rivian. Amazon’s annual net revenue rose 9% to $513.983 billion.
The technology company has spent quarter after quarter weighed down by the sharp fall in the stock market of Rivian, in which it has a significant stake, and according to a statement from the company, it took a charge of 12.7 billion dollars, which has contributed to the company’s first unprofitable year since 2014.
Amazon’s big 2019 bet on Rivian has taken its toll on the Seattle firm since the start of last year, a period in which the automaker has lost 65% of its capitalisation.
Meanwhile, Amazon’s annual net revenue rose 9% to $513.983, with higher sales volume in North America – its main source of revenue – a decline internationally and notable growth in its cloud business, Amazon Web Services (AWS).
AWS, which leads its market, grew 29% this year to $80.1 billion and was also the only segment with an operating profit of $22.9 billion, but experts said today that it is moderating its growth due to the emergence of competitors.
Other factors that have affected Amazon’s accounts include inflation, which has contributed to higher costs and lower demand, and efficiency measures that have had an impact on severance payments and depreciation of equipment, property and rents.
Nevertheless, chief executive Andy Jassy was optimistic about the future, saying the company expects to post first-quarter operating profits of up to $4 billion and net revenue growth of 4-8%.
Amazon announced in early January that it plans to lay off 18,000 workers, 6 per cent of a huge workforce that doubled after the declaration of the covid-19 pandemic, when the e-commerce and broader technology sector “boomed”.
In the fourth quarter, the most closely watched on Wall Street, the company earned $278 million, down 98% year-on-year, while its net revenue rose almost 9% to $149.204 million, figures that did not convince investors.
After the results were published, at the close of trading, Amazon’s stock was down nearly 4 % in electronic trading. In the last year, it has lost 19% of its capitalisation, which stands at 1.06 trillion dollars.
