Amazon reported a $3.8 billion loss yesterday for its first quarter. This is the first loss that the company has reported in seven years.
According to the press release, the biggest reason for this loss is its investment in the electric vehicle company Rivian, which has seen its shares plummet nearly 70% since the start of the new year. They dropped 53% in the first quarter of 2022 alone.
“First quarter 2022 net loss includes a pre-tax valuation loss of $7.6 billion included in non-operating expense from our common stock investment in Rivian Automotive, Inc,” states the Amazon press release.
As a result of this loss, Amazon shares also dropped, from $2903.65 a share at the close of Thursday to $2552.00 at the open today.