The e-commerce behemoth’s online sales fell 3% in the first three months of the year, as the pandemic’s boost to its company begins to fade.
Meanwhile, Apple has warned that interruptions in China may cost the company up to $8 billion (£6.4 billion).
Both companies are dealing with supply chain challenges as well as the effects of the Ukraine conflict.
Other elements of Amazon’s business, such as cloud computing and advertising, continued to grow rapidly.
The corporation reported a $3.8 billion loss, mostly owing to a $7.6 billion loss on the value of its Rivian holding.
Rivian is owned by Amazon, who invested in the firm in 2019 with ambitions for an electric delivery fleet. Amazon holds a nearly 20% investment in the company.
However, as the firm struggles to ramp up production, the stock price of the electric car producer has more than halved since the beginning of the year.
Overall, Amazon expects sales to climb by as little as 3% in the next months, a significant decrease from the double-digit growth it has experienced in previous years, even before the epidemic.
“The epidemic and ensuing conflict in Ukraine have brought unprecedented growth and difficulties,” said Andy Jassy, Amazon’s CEO.
He also mentioned that the corporation was dealing with rising prices as a result of “ongoing inflationary and supply chain challenges.”
As trading began in the United States on Friday, Amazon’s stock plunged 12%.
The company’s overall revenues increased by 7% year over year to $116.4 billion, thanks to Amazon Web Services (AWS), the company’s cloud-computing business and consistent profit generator.
Revenues from AWS increased by 37% year over year, while advertising income increased by 23%.
However, growth slowed significantly elsewhere, particularly in its overseas sector, where sales fell 6%.
Expenses are also fast increasing, with inflation adding $2 billion to costs in the first quarter.
In the face of labour shortages, the corporation has raised pay to attract workers, and it is also confronting a growing campaign in the United States to allow workers to form unions.
In the meanwhile, rising fuel prices have increased delivery expenses.
Amazon has previously announced that it will raise the price of its Prime program for US consumers, which allows users access to features such as quicker shipment, citing rising salary and shipping expenses.
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