Amazon has reported a net loss of $3.8 billion in the first quarter of the year, compared to an income of $8.1 billion in the same period of 2021.

A $7.6 billion loss was largely driven by the collapse in shares of electric vehicle automaker Rivian Automotive, which Amazon has heavily invested in.

Reports suggest that following the release of its financial results for the quarter, shares dropped by around 10 per cent.

Sales increased by just seven per cent to $116.4 billion in the quarter, compared to 44 per cent growth in the same period of 2021.

“The pandemic and subsequent war in Ukraine have brought unusual growth and challenges,” said Andy Jassy, Amazon chief executive. “Today, as we’re no longer chasing physical or staffing capacity, our teams are squarely focused on improving productivity and cost efficiencies throughout our fulfillment network.

“We know how to do this and have done it before. This may take some time, particularly as we work through ongoing inflationary and supply chain pressures, but we see encouraging progress on a number of customer experience dimensions, including delivery speed performance as we’re now approaching levels not seen since the months immediately preceding the pandemic in early 2020.”

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