Amazon stock plunges in first quarterly loss since 2015

Amazon.com Inc. reported a loss of $3.84 billion for the first three months of the year Thursday. Company stock then fell by more than 12 percent Friday. In addition, other widespread losses in tech sank the Nasdaq to its lowest point since 2008. Last year, Amazon reported a profit of $8.1 billion for the first quarter.

What is behind the fall? March was the first month to show decline in online sales since the pandemic began. Amazon is also dealing with inflation, supply chain shortages, and higher shipping costs. The chief financial officer reported overseas container shipping costs alone have more than doubled since before the pandemic. The company also suffered a $7.6 billion loss from its stock investment in Rivian Automotive, an electric car company. A day earlier, Ford, another Rivian investor, also reported a multibillion-dollar net loss. Even if Amazon had not invested in Rivian, analysts say company profits still would have fallen short of projections.

Dig deeper: Listen to Kent Covington’s report on whether we’re close to the end of the pandemic on The World and Everything in It podcast.