Amazon’s Latest Quarterly Results Exceeded Forecasts But Figures Display Worst Annual Loss In Years

The results for Amazon’s Q4 revenue of 2022 are out and while they display better than expected figures forecasted by the company, it’s still not great.

Moreover, it wouldn’t be wrong to say the firm has just recorded its worst-ever yearly loss in years and that’s a huge eye-opener.

While net sales did witness a 9% growth rate, owing to the holiday season, it’s definitely a reminder of the huge struggles and challenging times that lay ahead. This compounded with the likes of economic slowdowns seen across different divisions means the worries will continue.

The firm’s own guidance figures predicted a growth that would be up by 2 and 8% respectively YoY. With that being said, this was the least profitable fourth quarter results ever. And here is where the firm earned 0.3 billion in this particular quarter, which was a huge drop from its respective $14 billion seen in the past year.

As far as the full year is concerned, the company was seen displaying a net loss worth $2.7 billion and that’s for the first time since the year 2014 that we saw a reverse of the trend for yearly profits and a big boom in growth during the pandemic witnessed.

Then we had the likes of Amazon mention how a $12.7 billion loss in 2022 owed to its pre-tax valuation, thanks to investments linked to the EV firm Rivian.

One particular area of mention that had to do with severe underperformance was highlighted to be its international business. Here is where we saw a massive fall in net sales. Figures were highlighted to be 8% YoY in FY2022, after seeing a 22% growth in the previous period.

On the other hand, the other three company’s main components that drive businesses include an enticing AWS business which is far less than what was seen in the past.

The fourth quarter of Amazon was certainly busy. It featured the likes of early access sale of its Prime and the launch of the famous Kindle Scribe. The latter is linked to taking notes in a more focused and organized manner.

Then, we had the likes of a more phased launch of the Matter to Alexa devices. On another front, we even witnessed Amazon discontinuing its Amazon Glow and the retirement of its leading executive for Prime Video, Gaming, and even Twitch.

Amazon did end up reaching an agreement with the European Union where it tried hard to make the playing field more leveled for sellers belonging to third parties. Then on a more serious labor front, we had the likes of several walkouts that popped up ahead of the festive season.

Q4 for Amazon was also a signal of a new beginning in terms of some major layoffs. This has now become a huge norm for many people in the tech industry where big names are resorting to this to handle their inflating costs amid the current economic downturn.

Just last year in November, the firm was seen setting out an announcement linked to huge firing sprees of its workforce that would entail mega cuts to the hardware and service teams. During that time, the CEO even promised that more could be on the way and hence requested people to keep a lookout for that soon.

Then at the start of January, we saw how the firm announced it was going to remove 18,000 jobs and the majority had to do with massive hits to the likes of People and the Amazon Store in general.

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