Amazon’s $2.525 Billion Equity Investments Revealed: What Does This Mean for Your Finances?
Amazon recently disclosed their equity investments in public companies, totaling $2.525 billion as of June 30. The majority of this sum comes from their investment in electric vehicle maker Rivian Automotive Inc., with Amazon owning 158.36 million shares valued at $2.125 billion. This is a significant increase from the end of the first quarter, when Amazon’s investments were valued at $2.117 billion, including $1.734 billion worth of Rivian’s stock.
Rivian’s stock closed at $13.42 on June 28, a 22.6% increase from the previous close on March 28. This suggests that Amazon may report “Marketable equity securities valuation gains” of around $408 million in their upcoming Q2 10-Q filing. In contrast, their Q1 filing showed losses of ($2.126 billion), including a $2 billion loss from Rivian’s stock.
In simple terms, Amazon’s investments in companies like Rivian have seen significant gains in the second quarter, potentially leading to a boost in their financial performance. This could have a positive impact on their overall valuation and potentially influence their stock price. For investors, this news may signal the potential for growth in Amazon’s portfolio and could be a factor to consider when making investment decisions.