Amazon recorded its slowest period of year-over-year growth in more than a decade in the company’s latest earnings report.
The tech giant, which is poised for growth as it continues to add live sports to its Prime Video service, generated $116.4 billion in revenue in Q1 2022, a 7% increase year-over-year, behind a net loss of $3.8 billion for the quarter.
Shares of the Seattle-based company, however, were down nearly 10% in post-market trading.
Amazon attributed the lukewarm results to supply chain shortages and inflationary pressures, but the company’s first quarter also included costly expansion projects and deals.
- It launched its Luna cloud gaming service, allowing U.S. customers to access more than 100 gaming titles on devices that include PCs and Fire TVs.
- The company closed its acquisition of MGM for $8.5 billion, adding 4,000 film titles and 17,000 TV episodes to its portfolio.
Amazon also announced a media rights deal with Universal Tennis in Q1, which will also include an investment by the tech giant to implement inclusive and innovative changes for the sport.
Live Sports
Last year, Amazon Prime agreed to an 11-year deal with the NFL for exclusive rights to “Thursday Night Football” for $1 billion per season. It also inked a deal to carry Ligue 1 and Ligue 2 games for $1 billion.
Earlier this week, it secured a rights agreement with mixed martial arts promoter One Championship.
As a result of the investments, Amazon announced a price increase for the service last quarter, from $119 per year to $139.
