29 Apr 2022
Amazon Shares Plummet by 8% over Sudden Q1 Loss and Inadequate Q2 Forecast
The Index Today
Shares of Amazon.com plunged by 8% during the after-hours, after the company posted its first quarter revenue with an EPS of $7.56, which fell short of analysts’ estimate of $8.36.
Reuters reported that the loss comprises a pre-tax valuation damage of $7.6 billion filed under non-operating expenditures as part of the firm’s common stock investment in Rivian Automotive Inc. Earnings soared by 7% year-on-year to $116.4 billion, moderately surpassing the estimate of $116.3 billion.
It was also made worse by the company’s fiscal forecast placing earnings in the range of $116-121 billion (up 3% and 7% year-on-year), which fell short of the general consensus estimate of $125.55 billion. Prior to the after-hours plunge, Amazon’s shares had fallen by 13% this year till date, reported Reuters.