Amazon Is the First Company Ever to Lose $1.000.000.000.000
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Phew, just looking at all of those zeroes made me dizzy! Can you believe that a company as massive as Amazon could actually lose over $1.000.000.000.000? It may seem unimaginable, but recent reports have confirmed that Amazon has indeed reached this incredible milestone – and not in a positive way. But, how did this happen?
Amazon Loses $1.000.000.000.000. But, How?
Amazon.com Inc. has become the first public company in the world to lose a trillion dollars in market value. This decline is attributed to various factors including rising inflation, stricter monetary policies, and disappointing earnings updates. On a specific day, Amazon’s stock fell by 4.3%, leading to a decrease in its market value to approximately $879 billion from its peak of $1.88 trillion in July 2021. Microsoft Corp. was close behind in this decline, having lost $889 billion from its peak in November 2021.
Throughout the year, technology and growth stocks have faced significant punishment, exacerbated by fears of an impending recession. This sentiment has further dampened confidence in the sector. The top five US technology companies, ranked by revenue, have collectively lost nearly $4 trillion in market value over the year.
How Did Amazon Lose All of That Money?
The world’s largest online retailer, Amazon, has faced challenges this year due to a sharp slowdown in e-commerce growth as people return to pre-pandemic shopping habits. Its shares have dropped nearly 50% amid slowing sales, rising costs, and increased interest rates. Co-founder Jeff Bezos has seen a significant decline in his fortune, losing about $83 billion since the beginning of the year. Amazon recently projected its slowest revenue growth for a holiday quarter in company history, reflecting reduced consumer spending amidst economic uncertainty. Consequently, its market value fell below $1 trillion for the first time since the pandemic-fueled rally in tech stocks over two years ago.
Amazon founder Jeff Bezos has experienced a significant decline in his net worth, dropping from $192.5 billion at the beginning of the year to $113 billion, according to the Bloomberg Billionaires Index. This comes as a direct link after Amazon lost $1.000.000.000.000.
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