Amazon Stock Erases $210 Billion In One Day After Inflation Triggers Surprise Loss And ‘Ugly’ Selloff

Shares of Amazon collapsed Friday after the e-commerce monolith reported worse-than-expected earnings spurred by high inflation and lingering supply chain constraints, pushing the stock down more than 30% below its record high and extending a slate of massive losses among formerly high-flying technology firms.

Amazon stock tumbled 14% Friday to $2,485, logging its worst day since 2014 and wiping out about $210 billion in market value.

Spurring the losses, the Seattle-based giant on Wednesday reported an unexpected loss of $3.8 billion in the first quarter, or $7.38 per share, significantly worse than the $8.36-per-share profit analysts were expecting and much lower than the profit of $8.1 billion a year earlier; excluding a pre-tax valuation loss of $7.6 billion on its investment in electric-vehicle maker Rivian, the company posted operating of $3.7 billion.

In a statement, CEO Andy Jassy chalked up the losses to ongoing inflationary and supply chain pressures, as well as “unusual growth and challenges” around the pandemic and subsequent war in Ukraine, saying the firm is "squarely focused" on improving productivity and cost efficiencies.