Having previously joined the prestigious $1 trillion valuation club, leading American company Amazon has become the first public organization to lose a staggering $1 trillion in market value.
A combination of rising inflation, tighter monetary policy and disappointing earnings updates triggered a historic fall in Amazon’s share price this year.
It began when shares fell 4.3 per cent on Wednesday, bringing its market value down to around $879 billion from a peak of $1.88 trillion in July 2021. It also disappointed investors last month when third-quarter earnings fell short of expectations. Worse, the company expects fourth-quarter growth to be just 2-8 per cent year-on-year.
This year, the shares fell by about 48 per cent of their total value, a far cry from what was seen in July 2021. According to Bloomberg, the company’s market capitalization reached about $1.9 trillion at that time.
Microsoft also lost $889 billion from its peak in November 2021, in a contest between tech titans to see who loses the most.
The sources for this piece include an article in Gizmodo.