Observed Signal · Feb 3, 2023 · Earnings Report · Source: Trending Topics · Impact: 4/5 · Sentiment: Neutral
Amazon Posts First Annual Loss Since 2014 on Rivian Stake
Amazon reported a net loss of $2.7 billion for 2022, its first annual loss since 2014, despite net sales rising 9% to $514.0 billion. The loss was largely driven by a $12.7 billion pre-tax valuation charge related to Amazon's equity investment in Rivian Automotive, whose market value collapsed from $127 billion at its 2021 IPO to $16.3 billion by the end of 2022. Foreign exchange effects also weighed on results, costing the company approximately $5 billion. For Q1 2023, Amazon guided net sales between $121 billion and $126 billion and operating income between $0 and $4 billion, citing uncertainty.
Amazon is a major global e-commerce and advertising platform; its first annual net loss since 2014 and cautious Q1 2023 outlook signal broader economic headwinds relevant to the digital media and ad market.
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Key Takeaways & Evidence Grounding
- Amazon reported a net loss of $2.7 billion for fiscal year 2022, its first annual net loss since 2014.
- Net sales increased 9% year over year to $514.0 billion in 2022, from $469.8 billion in 2021.
- The 2022 net loss included a $12.7 billion pre-tax valuation loss on Amazon's common stock investment in Rivian Automotive.
- Rivian's market value fell to $16.3 billion by the end of 2022 from $127 billion at its 2021 IPO.
- Amazon estimated that foreign exchange rate changes cost it approximately $5 billion in 2022.
Connected Companies & Entities
2 Entities mapped“Amazon reported a net loss of $2.7 billion for 2022 and a 9% revenue increase to $514.0 billion....”
“The net loss included a $12.7 billion pre-tax valuation loss from Amazon's investment in Rivian Automotive, Inc....”
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