Amazon stock falls sharply

Amazon stock falls sharply
By Terry A. Hurlbut
Amazon (NYSE:AMZN) fell sharply in after-hours and pre-market trading between the Thursday and Friday session. The stock could be down 20 percent year-to-date by day’s end.
What happened at Amazon
Amazon stock fell more than ten percent in after-hours trading after Amazon released its earnings report. That report showed the company losing $3.8 billion, when most analysts expected it to make $4.4 billion. This is also the first time in many years that the company has lost money in a quarter.
The sources for this story gave several reasons for the loss. First, the company earned $7.38 per share when analysts expected $8.36. Second, Amazon lost $7.6 billion on its 20 percent stake in Rivian, the electric truck and SUV maker. Rivian has lost 75 percent of its value since its Initial Public Offering last October. Third, the company is not sure it will turn a profit in the second quarter, now in progress.
Those same analysts expect Amazon to bring in good revenue from advertising and its Cloud Services unit. But Rivian is the weak spot. Rivian has gone into production, but has failed to lock in its battery supply, as Tesla has. Two embedded videos (see below) describe Rivian’s weaknesses – and Tesla’s strength in that market, especially with its new Cybertruck due to go into production in Texas this year or early next.
Amazon also has commissioned new last-mile delivery trucks built on a Rivian chassis.
The outlook for online sales presents another weak spot. The pandemic is not as severe as feared, if it ever was. So people won’t shut themselves in and watch Amazon Prime Video, among other things.
Other problems Amazon makes for itself
All this comes as Amazon makes the news for another reason half its customers might not appreciate. Matt Walsh wrote a children’s book, Johnny the Walrus, about a boy who thinks he’s a walrus and how he gets wise to himself. That book has twice made “bestseller” in Amazon Books. In fact it sold out after 18 months and is now it its fourth printing.
Apparently, that does not make company staff happy. In fact the firm’s leadership literally held a staff meeting to deal with the trauma of that work being a best seller. The infamous Libs of Tik Tok account on Twitter has video (see below). Furthermore, the new Daily Wire for Kids will carry the title. (Amazon moved it out of children’s books to political commentary.)
The company, or at least some of its staff, seem to think their customers feel as they do. Well, perhaps some do – but at least half don’t, and maybe most don’t. A company that just lost money for the first time in years, should pay attention to things that might make it lose even more.
Nor is this the worst thing with which employees must deal. Amazon employees seem to suffer more than their share of physical injuries on the job. Also, a worker won reinstatement after the company fired him for protesting working conditions. Maybe instead of theoretical psychological harms, the company should address possible physical ones.

Link to:
The article:
https://www.conservativenewsandviews.com/2022/04/29/editorial/talk/amazon-stock-fall-sharp/

Libs of TikTok tweets with video:
https://twitter.com/libsoftiktok/status/1519024303982845952
https://twitter.com/libsoftiktok/status/1519029650294378497

YouTube videos about Rivian’s weaknesses:
https://www.youtube.com/watch?v=KodSLzV-Kdk
https://www.youtube.com/watch?v=a5tcpNxWJ14

Conservative News and Views:
https://www.conservativenewsandviews.com/

The CNAV Store:
https://cnav.store/