Amazon Stocks Dropped Hard

E-commerce giant Amazon's shares fell by 10 percent due to the war between Russia and Ukraine and the rising inflation associated with it.

Amazon stocks dropped hard. The quarantine decisions implemented during the Covid-19 epidemic led consumers to online shopping, and the e-commerce giant broke a record during the pandemic period. But recent developments have had negative consequences for the Washington-based tech company. Announcing its first quarter results, the company reported a net loss of $3.8 billion. It's the first time Amazon has made a quarterly loss since 2015. While market expectations are to report a profit of $ 8.40 per share; A loss of $7.56 was made. Earnings per share in the same period of 2021 was recorded as $ 15.79. In addition, the company reported a net profit of $ 8.1 billion in the first quarter of 2021. Experts evaluated that the $ 7.6 billion charge-off from Rivian, the electric vehicle investment, had a large share in Amazon's loss. On the other hand, Amazon has estimated revenue of $121 billion for the second quarter. That figure fell short of the $125 billion revenue estimate in a Bloomberg survey. In light of these developments, Amazon shares fell 10 percent yesterday. Amazon's revenue in the first quarter reached $116.4 billion, up 7 percent compared to the same period last year. In a Bloomberg survey, the revenue expectation for Amazon was $116.43 billion. The 7% revenue growth was recorded as the lowest quarterly revenue growth rate for the company in more than 20 years. The official statement by the company drew attention to the war in Ukraine, supply problems and rising costs with inflation rising to a 40-year high. In a statement, Amazon CEO Andy Jassy said, “The pandemic and the ensuing war in Ukraine brought extraordinary growth and challenges.”