• DTS.USA
    5.320
    -0.013
    -0.2%
  • NTI.USA
    2.800
    0.000
    0%
  • NTID.USA
    2.760
    -0.100
    -3.5%
  • NTIDL.USA
    1.940
    -0.100
    -4.9%
  • OTRI.USA
    6.190
    0.010
    0.2%
  • OTVI.USA
    12,391.500
    -166.900
    -1.3%
  • DTS.USA
    5.320
    -0.013
    -0.2%
  • NTI.USA
    2.800
    0.000
    0%
  • NTID.USA
    2.760
    -0.100
    -3.5%
  • NTIDL.USA
    1.940
    -0.100
    -4.9%
  • OTRI.USA
    6.190
    0.010
    0.2%
  • OTVI.USA
    12,391.500
    -166.900
    -1.3%
Company earningsLast MileLast-mile deliveryModern ShipperNewsParcelTop Stories

Amazon posts big net loss, drop in operating income

Bottom-line result hit by massacre in Rivian shares

Amazon.com Inc. shares took an after-hours beating Thursday after the e-tailing giant posted a $3.8 billion first-quarter net loss, equal to $7.56 per diluted share, compared with an $8.1 billion profit in the 2021 quarter.

The bottom-line number was noisy, as it included a $7.6 billion pretax loss in the value of Amazon’s (NASDAQ: AMZN) stake in electric truck manufacturer Rivian Automotive Inc. (NASDAQ: RIVN). Rivian shares have plummeted since it went public last November, falling to the low-$30s range from a post-IPO high of about $170 a share.

As of 7 p.m. ET, shares were down 9.14%, which was well off its worst levels of the after-hours session. Shares had sunk nearly 13% earlier in the session before recovering.

Amazon’s top-line results came in at the high end of modest expectations. Net sales increased 7% to $116.4 billion, coming in near the high end of Amazon’s estimates. Excluding a $1.8 billion currency headwind, net sales rose 9%. But surging transportation and labor costs took their toll. Operating income dropped to $3.7 billion in the first quarter, compared with $8.9 billion in the first quarter of 2021. Amazon’s shipping costs rose 14% year-over-year to nearly $19.6 billion as the company coped with soaring container shipping and fuel costs.

Amazon has doubled the size of its fulfillment network over the past two years to keep pace with unprecedented pandemic-related demand. The company said it has caught up with capacity shortages and can now focus on productivity and efficiency improvements. The reliability of Amazon’s one-day shipping offering, launched with great fanfare before the pandemic only to be overwhelmed by an avalanche of demand, is back to levels seen shortly before the pandemic, CFO Brian Osalvsky said.

Mark Solomon

Formerly the Executive Editor at DC Velocity, Mark Solomon joined FreightWaves as Managing Editor of Freight Markets. Solomon began his journalistic career in 1982 at Traffic World magazine, ran his own public relations firm (Media Based Solutions) from 1994 to 2008, and has been at DC Velocity since then. Over the course of his career, Solomon has covered nearly the whole gamut of the transportation and logistics industry, including trucking, railroads, maritime, 3PLs, and regulatory issues. Solomon witnessed and narrated the rise of Amazon and XPO Logistics and the shift of the U.S. Postal Service from a mail-focused service to parcel, as well as the exponential, e-commerce-driven growth of warehouse square footage and omnichannel fulfillment.