Amazon.com Inc. (AMZN) is declining in the Current Market; here is why?

Amazon.com Inc. (NASDAQ: AMZN) stock is down in the current market after announcing first-quarter results. AMZN stock is currently trading at $2,404.79, losing more than 3.2% from the previous close. AMZN stock previously closed at $2,485.63 with a trading volume of 3.5 million shares.

Global Retail E-Commerce Industry

Amazon is the market leader when it comes to the e-commerce industry. The E-commerce industry saw a boom after 2010 when, after the boom of smartphones and digital literacy. The majority of the sales happen due to smartphones than someone making a purchase on a PC.

According to the estimates, the global retail industry was around $20.3 trillion in 2020. Forecasts say that this number will reach $29.4 trillion in 2025 and $39.9 trillion in 2030, with a compound annual growth rate of 7.7% and 6.3%, respectively.

AMZN: First Quarter 2022 Results

The revenue of Amazon increased to $116.4 billion by 7% in Q1 compared to the revenue in the same quarter last year. Previously, it was $108.5 billion.
In the first quarter of 2022, the company’s operating income was $3.7 billion, compared to $8.9 billion in the first quarter of 2021.
The company’s net loss was around $3.8 billion in Q1 2022, while on the contrary, the company recorded an income of $8.1 billion in Q1 2021.
Diluted loss per share in Q1 2022 was $7.56; in Q1 2021, diluted earnings per share were $15.79.

AMZN: Q2 Guidance

Compared to the second quarter of 2021, net sales will be between $116.0 billion and $121.0 billion, or a 3 percent to 7 percent increase in Q2 2022. About 200 basis points are expected to be impacted by foreign currency rates.
The company expects $(1.0) billion to $(3.0) billion operating profit (loss) in Q2 2022, compared with $7.7 billion in the second quarter of 2021.
Forecasts for Prime Day in 2022 are predicated on the third quarter occurring as expected.
Several assumptions are made, including that Amazon would make no further acquisitions or restructurings.