Amazon sinks 13% on Q1 results: ‘market is very disappointed’

By: Wajeeh Khan
Wajeeh Khan
Wajeeh is a News Reporter at Invezz covering the European, Asian and North America stock markets. Wajeeh has 5… read more.
on Apr 28, 2022
  • Amazon reports weak Q1 results and gives disappointing future guidance.
  • JMP Securities Mark Lehmann discussed earnings report on CNBC Closing Bell.
  • Inc shares slid about 13% in after-hours trading on Thursday. Inc (NASDAQ: AMZN) stock sunk 10% in extended trading on Thursday after the tech giant reported weak results for its fiscal Q1 and gave disappointing guidance for the future.

Notable figures in Amazon Q1 results

  • Lost $3.80 billion versus the year-ago figure of $8.10 billion in net income.
  • Per-share loss of $7.58 was significantly worse than last year’s $15.79 of EPS.
  • Revenue jumped 7.5% YoY to $116.44 billion, as per the earnings press release.
  • FactSet consensus was for $8.35 of EPS on $116.45 billion in revenue.
  • AWS brought in $18.44 billion in Q1, ahead of $18.34 billion expected.
  • eCommerce remained in loss both in North America and internationally.

Amazon’s investment in Rivian resulted in a $7.6 billion hit to Q1 profit as the EV maker’s stock continued to slip sharply. However, Amazon would have failed to meet Street expectations even without that charge. The stock is now down a little under 25% for the year.

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Future outlook and Mark Lehmann’s comments

For the current fiscal quarter, Amazon forecasts operating loss in the range of $1.0 billion to $3.0 billion on $116 billion to $121 billion in net revenue. This compares to analysts at $6.78 billion of operating income on $125.33 billion in revenue.

According to Amazon, its annual Prime Day sale this year will be in July. On CNBC’s “Closing Bell”, JMP Securities’ Mark Lehmann said:

Amazon’s guide wasn’t great, which isn’t very surprising considering the year we have ahead. They wanted to set the bar a little lower. But the market’s very disappointed. And it is concerning. There’s fears of a consumer that’s a bit softer and they didn’t see explosive number out of the cloud. So, that’s a tough pill to crack.

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