AMZN announced its first quarter (Q1) results, including a modest 7% increase in revenue year-over-year for the same period. The reversal of the double-digit sales trend of the past two years, with sales up 44% in the first quarter of 2021 and 25% in 2020, are indicators of a challenging external global environment and a shift in consumer behavior. Factors impacting Amazon’s sales near-term include a decline in consumer digital spending, continued inflationary pressures, and the war in Ukraine.
The company had a profit loss of $3.8 billion, down 147% from last year’s $8.1 billion. Amazon had a $7.6 billion pre-tax loss on its common stock investment in Rivian Automotive.