Amazon did a boat of money during the first quarter of 2022. But investors, who grew used to the Amazon rocket-like routes during the epidemic, did not adapt to the fact that they are not currently doing so quickly.
Despite $ 116.4 billion in sales from January to March this year – nearly $ 8 billion a year – Amazon shares plummeted in the after-hours trading, falling by about 10 percent before stabilizing slightly higher.
The problem is not that Amazon is down in Q1, but Amazon is forecasting Q2 to lower as analysts expect. Analysts wanted to see Amazon forecast $ 125.5 billion in sales, according to CNBCbut instead, the company only expects sales to come from $ 116 billion to $ 121 billion.
This is not a big problem in the system of things, but it shows the communication problem that Amazon is facing right now. The company has seen rapid growth as soon as possible only in the early stages of the disaster good Growth is now seen by investors as a sign of slow progress.
Amazon CEO Andy Jassy tried to set expectations for his first letter earlier this month, saying, “We have found something comparable to the three-year growth forecast for 15 months.”
Analysts are not mistaken that issues are slowing down on Amazon, though. The company reported 44 percent annual net sales growth in Q1 2021 and only 7 percent growth in Q1 2022. That is obviously much lower – Compound Capital Advisors says Rubudani is a sign of Amazon’s ever-growing Q1 growth. Amazon also claimed first quarterly losses since 2015mainly due to a $ 7.6 billion loss on its Rivian electric car investment, which has seen its shares fall by more than half this year.
Amazon is now focusing on “product development and cost effectiveness during our filling network,” Jassy says. But he warned “this could take time.”
The company also announced today that it will hold Prime Minister’s Day in July this year after being held in June last year. That will push for Amazon holiday earnings in the third quarter of 2022.
Amazon alone is not going to face any shareholder problems this year. Sida BloombergSteve Matthews indicatesall FAANG companies are seeing a decline: