Amazon posts slowest sales growth since 2001

By Ovunc Kutlu

ANKARA (AA) - US-based global e-commerce firm Amazon in the first quarter of this year saw its slowest sales growth since 2001, when the dot-com bubble had shaken the tech industry.

Total net sales came in at $116.4 billion in January-March, up 7% from $108.5 billion the same period of last year, but the slowest increase for any quarter in over two decades, according to the company's financial results statement released late Thursday.

The company said it estimates net sales to be between $116 billion and $121 billion in the second quarter of this year, or to grow between 3% and 7% from the second quarter of 2021.

"The pandemic and subsequent war in Ukraine have brought unusual growth and challenges," Amazon CEO Andy Jassy said in the statement.

Amazon also posted a net loss of more than $3.8 billion in the first three months of this year, its first quarterly loss since 2015.

The company said it had a loss of $7.6 billion from its investment in Rivian Automotive, an American electric vehicle automaker that has a partnership with Amazon in building electric delivery vans.

Amid weak financial results, Amazon’s stock price was down 12% to $2,538.59 per share on the Nasdaq at 1130EDT (1530GMT) on Friday.