Amazon Touts Close Of MGM Deal; Stock Dips On $3.8 Billion Q1 Loss, Soft Q2 Forecast

Amazon saw revenue nose up 7% to $116 billion but swung to a net loss of $3.8 billion in the first quarter of 2022 from a profit of $8.1 million the year before. Its Q2 outlook disappointed the Street and investors dinged the stock, which is off 7% in after-hours trading.

“The pandemic and subsequent war in Ukraine have brought unusual growth and challenges,” said CEO Andy Jassy, Amazon, noting ongoing inflationary and supply chain pressures. But the grab bag of commentary in its earnings release included a pretty long section devoted to entertainment, starting with the close of its $8.45 billion purchase of MGM. “MGM employees joined Prime Video and Amazon Studios. The storied, nearly century-old studio has more than 4,000 film titles, 17,000 TV episodes, 180 Academy Awards, and 100 Emmy Awards. The catalog includes franchise favorites such as James Bond, Rocky, and Legally Blonde, and classic movies such as Thelma & LouiseThe Silence of the LambsThe Magnificent Seven, and Raging Bull. The deal complements Prime Video and Amazon Studios’ work in delivering a diverse slate of original films and TV shows to a global audience and will create even more opportunities to deliver quality storytelling to customers.”

(Not all MGM employees joined – earlier this week news broke that MGM motion picture group chairman Michael De Luca and president Pam Abdy are leaving.)

Amazon noted the teaser trailer for The Lord of the Rings: The Rings of Power broke a global record for the most-watched entertainment trailer to debut during a Super Bowl telecast, with 257 million views globally in the first 24 hours of its release.

The company’s business is led by e-commerce and web services, or AWS, with subscriptions services and a growing advertising biz.

The series debuts September 2.

Execs are hosting a call with analysts at 5:30 ET.

MIORE

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