Amazon is the world’s first public business to lose a trillion dollars in market value this year, owing to a combination of increasing inflation, tightening monetary policy, and poor financial reports.
The e-commerce and cloud company’s shares slumped 4.3% on Wednesday, bringing its market worth down to around $879 billion from a peak closing of $1.88 trillion in July 2021. Amazon and Microsoft Corp. were neck and neck in the battle to break the dreaded barrier, with the Windows software giant behind by $889 billion from a November 2021 record.
While technology and growth stocks have been punished throughout this year, worries of a recession have lowered confidence even more in the sector. This year, approximately $4 trillion in market value has been lost by the top five US technology companies by revenue.
This year, the world’s largest online retailer has spent much of its time adapting to a significant slowdown in e-commerce growth as customers resumed their pre-pandemic behaviours. Its stock has dropped nearly 50% as sales have slowed, costs have risen, and borrowing rates have risen. According to Bloomberg figures, co-founder Jeff Bezos’ fortune has decreased by around $83 billion to $109 billion since the beginning of the year.
Amazon forecast the weakest sales increase for a holiday quarter in the company’s history last month as buyers cut back on buying in the face of economic uncertainty. For the first time since the pandemic-fueled rise in tech stocks more than two years ago, its market value fell below $1 trillion.
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