Amazon has reported its first quarterly loss since 2015 due to lower online sales and a fall in the value of its shares in electric vehicle firm Rivian.
Online sales at the e-commerce giant slipped 3% in the first three months of the year, as the boom to its business from the pandemic starts to fade.
Meanwhile, Apple warned its sales could be hit by up to $8bn (£6.4bn) following disruptions from lockdowns in China.
Both firms face supply chain issues and the impact of the war in Ukraine.
Growth in other parts of Amazon’s business, including cloud computing and advertising, remained strong.
The company reported a loss of $3.8bn, mainly due to a loss of $7.6bn on the value of its stake in Rivian.
Amazon invested in Rivian in 2019 with plans for an electric delivery fleet and owns a near-20% stake in the company. But the electric vehicle maker’s share price has more than halved since the beginning of the year as the company has struggled to ramp up production.
Overall, Amazon forecast sales growth of as little as 3% in the coming months – a marked slowdown from the double digit growth it has enjoyed in recent years, even before the pandemic.
Credits : https://bbc.in/3vZP7TR