How much Amazon is gaining from sharply falling Amazon Web Services shares

Amazon’s revenue from the sale of products (i.e. its own store on the Internet platform and stationery stores (year-on-year decreased from 57.49 to 56 .45 billion dollars.

Strong growth in Amazon Web Services

On the other hand Services revenue increased from $51.03 billion to $59.99 billion. They include, among others, Amazon Seller Commissions and Fees, Amazon Prime and Fees Amazon Web Services. Revenues from the latter service are ranked separately – year by year they grew from $13.5 billion to $18.44 billionand operating profit increased from $4.16 billion to $6.52 billion.

Last quarter advertising revenue was $8.17 billion (a year ago the group had not yet included it in the financial statements, while in the fourth quarter of last year it reached $31 billion).

The company’s remaining operations ended in operating losses. The company’s revenue in North America, i.e. the United States and Canada, increased from $64.37 billion to $69.24 billion, and operating income increased from 3, $45 billion profit to $1.57 billion loss.

On the other hand, in the other markets, the turnover decreased from 30.65 to 28.76 billion dollars and the operating result from 1.25 to 1.28 billion dollars.

The company said unfavorable changes in exchange rates reduced the value of its total revenue by $1.8 billion last quarter. Without this adjustment, revenues would increase by 9%.

Amazon boss on inflation and supply chain disruptions

Amazon’s operating expenses grew much more than sales revenue – by 13.2%. at $112.77 billion. Selling costs increased the most in terms of value (from $62.4 billion to $66.5 billion) and delivery costs (from $16.53 billion to $20.27 billion).

Technology and content spending increased from $12.49 billion to $14.84 billion, and sales and marketing spending from $6.21 billion to $8.32 billion.

As a result, the company’s operating profit fell from $8.86 billion to $3.67 billion. Free cash flow over the past four quarters was $18.6 billion, up from $26.4 billion a year earlier.

Amazon CEO Andy Jassy pointed in his comments to the positive average annual momentum in the company’s earnings over the past two years. He admitted that the company’s priority was no longer development in terms of the size of physical retail and warehouse space and the number of employees.

Now our teams are focused on improving productivity and profitability across our entire supply network. We know how to do it and we have done it in the past – he stressed.

This may take some time, especially as we work with continued pressures on inflation and supply chains – he underlined.

$7.6 billion write-off for Rivian

Amazon’s net profitability was weighed primarily by $8.57 billion in non-operating expenses (compared to $1.7 billion in revenue a year ago). This amount consisted of $7.6 billion in write-offs at startup Rivian Automotive, which the company first invested in in 2019.

Additionally, Amazon paid $1.42 billion in income taxes last quarter, compared with a tax profit of $2.15 billion a year earlier.

As a result net income went from $8.11 billion in profit to $3.84 billion in loss.

End of March this year. Amazon’s assets were $410.77 billion, up from $420.55 billion a year earlier. The valuation of securities held decreased from $59.83 billion to $29.99 billion, while the value of real estate and equipment rose from $160.28 billion to $168.47 billion.

The company had $36.39 billion in available cash, slightly more than a year earlier.

Amazon’s results came in below analysts’ expectations, particularly in terms of profitability: the market had expected a profit of $8.36 per share and the company posted a loss of $7.56.

Moreover, he expects that in the second quarter of this year. will reach between $116 billion and $121 billion in revenue, and the average analyst forecast is $125.5 billion.

As a result in post-session trading, Amazon shares were down almost 10%. Since the beginning of this year. the company’s price decreased by 15.15%, its capitalization is now $1.57 trillion.

In Poland, Amazon’s online platform was fully launched in March last year, and in October it made the Amazon Prime service available to us.

However, for almost a decade the company has been developing distribution centers in Poland and currently has 10 such facilities. Management company Amazon Fullfilmment Poland last year. achieved a revenue increase of 20.2 percent. to PLN 4.41 billion and a net profit of PLN 28.67 to PLN 111.16 million. The company already employed 22,000 people. employees, 4.7 thousand. More than a year ago.

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