The Pandemic Boom is Over: Amazon Suffers $3.8 Billion Quarterly Loss

Amazon reported a loss of $3.8bn, much of which was driven by a hit from its investment in electric carmaker Rivian.

The company warned there may be more losses ahead.

Amazon was one of the biggest winners of the pandemic, recording huge jumps in sales as consumers moved to shopping online and companies turned to Amazon Web Services (AWS), its cloud computing unit, to run their businesses. 

Net loss was $3.8 billion, or $7.56 per share, compared with a profit of $8.1 billion, or $15.79 per share, a year earlier.

The pandemic and subsequent war in Ukraine have brought unusual growth and challenges.

Some economists attributed the change to household budgets strained from higher gasoline prices, while others blamed shifting seasonal patterns. 

Amazon is the world’s largest online retailer and a prominent cloud services provider. Its headquarters are in Seattle, Washington.

Jeff Bezos incorporated the company as Cadabra in 1994 but changed the name to Amazon for the website launch in 1995.?

The company has individual websites, software development centers, customer service centers and fulfillment centers in many locations around the world.

A drop in online sales and rising costs have helped to push Amazon to its first loss since 2015.

Online sales at the e-commerce giant slipped 3% in the first three months of the year.