Amazon reports its first unprofitable year since 2014

[Smack That Ace]

If the world economy did not fall into crisis, their loss would be seen as a sign of insecurity for them and their investors. But 2022 is a terrible year for the world economy due to post covid and war, so the business loss is predictable. As mentioned in the article, the loss was largely due to its investment in electric car company Rivian Automotive Inc, not its declining business. So I see nothing to worry about, recovery is just a matter of time.

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[davis196]

Lost $$ on rivian EV investment
Doubled fulfillment center overhead on their warehouse expansion over roughly the past 2 years
Demand for amazon web services declined
Amazon is buying one medical for $4 billion

1.Investing in an EV manufacturer is a risky move that would probably pay off in the long term(after 10+ years).
2.Amazon had a growing business during the pandemic. The pandemic is now over, it's pretty normal for online sales to drop.
3.I don't think that AWS is the biggest part of Amazon. This isn't a "make or break" situation. I'm sure that Amazon Web Services will be fine
I don't feel sorry for Amazon. We should feel sorry for all the small businesses, that were killed by Amazon.

[xSkylarx]

I've never heard that they are into making electric cars, which I've searched for, and I saw that they really have their own design. I think their losses are combined with the inflation that is happening right now as the products are getting expensive and people don't have extra income to purchase products on Amazon, and they also invested in the rivian project that they are doing, which is why they are still at a loss, but once their rivian is successful, I think they will be up again. Though that is really the life of business, you are not always at the top, so there are really times that you are at the bottom.

[dansus021]

Yeah I heard the rivian too i think its very hard to compete with tesla and the stock of rivian still at minus. In the other hand I don't know if the web service is slightly down in the ERA of internet and AI like this.

[harapan]

It's unfortunate that a giant like Amazon had to face financial losses. So it's probably the best time to buy Amazon stocks. It's already down by 35% in the last one year and trading at a very attractive level. If someone wants to play long term, probably this is the time to buy.

Amazon's business is robust but due to the ongoing recession, they are seeing less demand for their cloud services. Also there are multiple competitors available in the market which wasn't the case couple of years back.

My personal feelings is Amazon will come back for sure, but just needs to have patience. Corporates make wrong investment decisions too just like any retail investors..

Its nothing new. Large corporations like this make losses all the time. I think that's a difference between them and a small business. If a small business makes that kind of loss they will be in big trouble but since its Amazon, its seen as a huddle that can be dealt with.
Buying the stock when they're down seems like a good investment because the stocks of a company like Amazon will most likely go up but like you said, it has to be the long run strategy because I don't think it will be going up at a fast rate, I may be wrong.   

[justdimin]

1.Investing in an EV manufacturer is a risky move that would probably pay off in the long term(after 10+ years).
2.Amazon had a growing business during the pandemic. The pandemic is now over, it's pretty normal for online sales to drop.
3.I don't think that AWS is the biggest part of Amazon. This isn't a "make or break" situation. I'm sure that Amazon Web Services will be fine
I don't feel sorry for Amazon. We should feel sorry for all the small businesses, that were killed by Amazon.

This is 100% true and a fact. Just because they spent more money doesn't mean that they are dying, they still had insane amount of profit but they just ended up spending a lot and that is why it looks like a loss. Hell these companies have cash reserves as big as their entire operational costs, which means that for the year of 2023 they could make ZERO revenue and still run for a while, probably at least a year.

Not like that would happen but if that happened they would cut costs and still go on, fire tens of thousands of people and still move on. All in all amazon is a huge company and they are doing fine and there is absolutely no reason to be sad about their loss, I rather cry about the worker they have who lives under poverty level wage.

[Lucius]

~snip~
Not like that would happen but if that happened they would cut costs and still go on, fire tens of thousands of people and still move on. All in all amazon is a huge company and they are doing fine and there is absolutely no reason to be sad about their loss, I rather cry about the worker they have who lives under poverty level wage.

Even if they fall into some serious problems, it is unlikely that politics will let them fail just like that, because it is still a company of great importance for the US considering that it is globally positioned. What you say about the workers is unfortunately true, because there are so many stories about it online that one wonders if it is possible for such a company to actually profit from such massive exploitation of people all over the world. But they are not the only company that operates in such a way that people are consumables that they use in the way that suits them best.