- For a second straight quarter, Amazon took a massive writedown on its investment in electric vehicle maker Rivian.
- Shares of Rivian lost almost half their value in the period after dropping by more than 50% in the first quarter.
- Amazon’s report comes a day after Ford took a $2.4 billion mark-to-market writedown on its stake in Rivian.
Amazon’s stake in electric vehicle maker Rivian Automotive was once worth $27 billion. That was in November, shortly after Rivian’s IPO, which took place just before the Nasdaq peaked.
But with investors rotating out of risk in 2022 and selling off last year’s high-priced IPOs, Amazon has now taken paper losses on its Rivian stake totaling $11.5 billion for the first two quarters, a stretch during which Rivian lost three-quarters of its value.
Amazon said in its second-quarter earnings report on Thursday that it recorded a $3.9 billion loss on its Rivian holdings during the period. The report comes a day after Ford, which is also one of Rivian’s top backers, took a $2.4 billion mark-to-market writedown.
Amazon’s investment is now worth about $5 billion.
www.cnbc.com/2022/07/28/amazon-records-tk-billion-loss-on-rivian-holding-in-second-quarter.html
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