Amazon (AMZN) Q1 2022 earnings

Andy Jassy, ​​CEO of Amazon and then CEO of Amazon Web Services, speaks at the WSJD Live conference in Laguna Beach, California, October 25, 2016.

Mike Blake | Reuters

Amazon shares dropped as much as 7% in extended trading on Thursday after the company issued a revenue forecast that trailed analysts’ estimates.

Here’s how the company did:

  • Loss: Loss per share of $ 7.56
  • Revenue: $ 116.44 billion vs. $ 116.3 billion expected, according to Refinitiv

Here’s how other key Amazon segments did during the quarter:

  • Amazon Web Services: $ 18.44 billion vs. $ 18.27 billion expected, according to StreetAccount
  • Advertising: $ 7.88 billion vs. $ 8.17 billion expected, according to StreetAccount

Amazon recorded a $ 7.6 billion loss on its Rivian investment after shares in the electric vehicle company lost more than half their value in the quarter. That resulted in a total net loss of $ 3.8 billion.

Amazon’s total revenue increased 7% during the first quarter, marking the slowest rate for any quarter since the dot-com bust in 2001 and the second straight period of single-digit growth.

Amazon said it expects second-quarter revenue of $ 116 billion to $ 121 billion. Analysts were projecting sales of $ 125.5 billion, according to Refinitiv. The second-quarter forecasts suggest growth could dip even further, to between 3% and 7% from a year earlier.

“The pandemic and subsequent war in Ukraine have brought unusual growth and challenges,” Amazon CEO Andy Jassy said in a statement. He added that the company is “squarely focused” on offsetting costs in its fulfillment network now that staffing and warehousing capacity are at normal levels.

“This may take some time, particularly as we work through ongoing inflationary and supply chain pressures, but we see encouraging progress on a number of customer experience dimensions, including delivery speed performance as we’re now approaching levels not seen since the months immediately preceding the pandemic in early 2020, “Jassy said.

This story is developing. Check back for updates.

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