So as many posts talk about, AMZN stock fell over ten percent after Q1 earnings call. Most sources say this is due to a non-operating loss of 7.6B from their Rivian holdings (which is a publically traded stock and has been showing a steady decline in value over the past quarter of 54%.)
Meanwhile, AMZN revenue matched expectations, and I couldn't find expectations for operating expenses but it's 13% more than last year. However, EPS were at -7.56 vs the expected 8.49, seeming to lead to the price fall.
Considering Amazon's public RIvian holdings, why was this not priced into EPS and a surprise to the ever-efficient market?
Leave a Reply