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> The company attributed the loss largely to a $7.6 billion loss from its investment in electric automaker Rivian Automotive. Rivian, into which Amazon led a $7

> The company attributed the loss largely to a $7.6 billion loss from its investment in electric automaker Rivian Automotive. Rivian, into which Amazon led a $700 million investment in 2019, has seen its stock plummet more than 75% since its blockbuster November 2021 IPO. Some useful context.

guenthert 5y ago
Did I get this right? Amazon spent $700e6 three years ago and are now able to declare a $7.6e9 loss?
- hajile 5y ago
  Well, they no doubt counted it as profit before, so it’s only fitting.
- JumpCrisscross 5y ago
  > Did I get this right? Amazon spent $700e6 three years ago and are now able to declare a $7.6e9 loss? Companies prepare different books for the IRS and for investors. Amazon told investors their Rivian stake was worth $15.6bn at the end of last year [1]. They now have to revise that down. For the IRS, they probably held it at cost basis. [1] https://www.sec.gov/ix?doc=/Archives/edgar/data/0001018724/000101872422000005/amzn-20211231.htm https://www.sec.gov/ix?doc=/Archives/edgar/data/0001018724/0... page 44
mountainriver 5y ago
This is all about Jeff’s feud with Elon right?
- tamaharbor 5y ago
  Why can Jeff have The Washington Post but Elon can’t have Twitter?
  - mandeepj 5y ago
    Not comparable! WaPo is an one way media entity, but Twitter is a two way social media platform where users “engage”
    - speed_spread 5y ago
      In battle, all weapons compare. Now, who picked the gun and who picked the knife?
    - snypher 5y ago
      But the users may be robots?
JumpCrisscross 5y ago
That's part of the story, but far from all of it. Operating cash flow is down. Free cash flow is down. (Net sales are up.) https://www.sec.gov/Archives/edgar/data/0001018724/000101872422000011/amzn-20220331xex991.htm https://www.sec.gov/Archives/edgar/data/0001018724/000101872...
everybodyknows 5y ago
Market value of the Rivian investment would have been public knowledge prior to the earnings announcement, therefore baked into valuation spreadsheets, and so also into the price of AMZN stock.

guenthert 5y ago

Did I get this right? Amazon spent $700e6 three years ago and are now able to declare a $7.6e9 loss?

hajile 5y ago
Well, they no doubt counted it as profit before, so it’s only fitting.
JumpCrisscross 5y ago
> Did I get this right? Amazon spent $700e6 three years ago and are now able to declare a $7.6e9 loss? Companies prepare different books for the IRS and for investors. Amazon told investors their Rivian stake was worth $15.6bn at the end of last year [1]. They now have to revise that down. For the IRS, they probably held it at cost basis. [1] https://www.sec.gov/ix?doc=/Archives/edgar/data/0001018724/000101872422000005/amzn-20211231.htm https://www.sec.gov/ix?doc=/Archives/edgar/data/0001018724/0... page 44

mountainriver 5y ago

This is all about Jeff’s feud with Elon right?

tamaharbor 5y ago
Why can Jeff have The Washington Post but Elon can’t have Twitter?
- mandeepj 5y ago
  Not comparable! WaPo is an one way media entity, but Twitter is a two way social media platform where users “engage”
  - speed_spread 5y ago
    In battle, all weapons compare. Now, who picked the gun and who picked the knife?
  - snypher 5y ago
    But the users may be robots?

JumpCrisscross 5y ago

That's part of the story, but far from all of it. Operating cash flow is down. Free cash flow is down. (Net sales are up.) https://www.sec.gov/Archives/edgar/data/0001018724/000101872422000011/amzn-20220331xex991.htm https://www.sec.gov/Archives/edgar/data/0001018724/000101872...

everybodyknows 5y ago

Market value of the Rivian investment would have been public knowledge prior to the earnings announcement, therefore baked into valuation spreadsheets, and so also into the price of AMZN stock.