During the first nine months of this year, Amazon reported a net loss of around 3 billion dollars, a sharp turn from the roughly 19.0 billion dollars in profit it posted in the same period of 2021. The red ink comes as the company faces a stock market environment that has weighed on Rivian, the electric vehicle maker in which Amazon has held a substantial stake since 2019.
Even as losses mounted, Amazon, led by CEO Andy Jassy, managed to increase its revenue over the same stretch last year, rising from 332.41 billion dollars to 364.78 billion dollars. The momentum in sales shows that Amazon’s core operations are still expanding despite the quarterly setback.
Commitment to electric vehicles hurts
A major factor behind Amazon’s challenge has been its aggressive bet on electric delivery vehicles from Rivian, a move that began in 2019 and has yet to pay off as hoped since Rivian launched publicly in late 2021. This decision coincided with a notable drop in Rivian’s stock value, which has undercut investor sentiment about the broader portfolio. The market correction has had a spillover effect, influencing Amazon’s share price and perceived risk for shareholders.
Shareholders have faced lower yields this year, with returns per share well below the prior year’s highs. Rivian debuted on the market with strong initial enthusiasm, and its IPO represented a landmark event for 2021, signaling optimism about the future of electric delivery fleets. The early surge in Rivian’s price gave way to a more tempered trajectory as analysts reassessed the magnitude of the challenge in building a mass market for electric vans.
Analysts noted that a substantial portion of Rivian’s valuation relied on lofty expectations about production and demand, expectations that proved difficult to translate into immediate profits for its partners, including Amazon. The scale of the IPO excitement early on has partly contributed to this misalignment between hype and current financial performance, influencing Amazon’s accounting and investor sentiment to date.
Sales are increasing
On a brighter note, Amazon Web Services AWS continuing to power the group’s cloud strategy delivered a 32 percent year over year increase in revenue, reaching 58.718 billion dollars. AWS remains the backbone of Amazon’s profitability and strategic vision, maintaining a dominant edge over primary competitors, including Microsoft Azure and Google Cloud. This strength in cloud services helps cushion the broader business, underscoring why the AWS segment is often cited as the primary engine for future growth.
Despite the cloud glow, Amazon’s overall trading performance faced an after-hours setback that disappointed investors, with shares trading lower in New York during extended sessions. The reaction reflects a market that is weighing the company’s growth prospects against the near-term financial pressure from Rivian and other strategic investments. Still, the traffic in e-commerce and service demand remains robust, illustrating that Amazon’s core operations continue to attract consumer activity even as some bets on new ventures navigate a volatile funding environment.
Market observers have stressed that the path for Amazon’s earnings remains tied to the balance between aggressive capital allocation and the ability to monetize scale across its cloud, marketplace, and logistics platforms. The combination of continued AWS strength and evolving delivery strategies suggests the company is navigating a transition period rather than facing a simple downturn. Investors will be watching closely how the Rivian partnership and other venture bets influence long-term profitability and free cash flow, as Amazon positions itself for a more resilient, multi-stream growth profile in the years ahead. Credit: Market coverage from industry analysts and major financial outlets.