Thursday was a disappointment for Amazon investors as shares fell 9.3% after the e-commerce giant revealed its first-quarter results.
Amazon generated net sales of over $116.4 billion in the first quarter, with a loss of $3.8 billion—around $7.56 per share. The multinational company expects to lose over $1 billion in the upcoming quarter.
Increased expenses in warehouse maintenance and product delivery contributed to the drastic fall in earnings. Along with this, Amazon also offered high pay to workers.
The company is now planning to optimize transfers between its warehouses to reduce the loss.
Web Services stand strong
In contrast to the company’s online retailing business and advertising unit, Amazon Web Services increased its revenue to 37%—around $18.4 billion.
