Categories: International

Jeff Bezos Amazon Company Becomes the First Company in History to Lose $1 trillion Market Cap

Amazon.com Inc. is the world’s first public company to lose a trillion dollars in market value as a combination of rising inflation, tightening monetary policies and disappointing earnings updates triggered a historic selloff in the stock this year.

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More About The Sell-Off:

Shares in the e-commerce and cloud company fell 4.3%, pushing its market value to about $879 billion from a record close at $1.88 trillion on July 2021. The stock has lost around 48% of its value this year alone, and is a far cry from July 2021 when the company’s market cap almost touched $1.9 trillion. Amazon’s market value fell below the $1 trillion mark on November 1, days after the company posted mixed third-quarter earnings and projected the company’s slowest fourth-quarter growth ever.

Across US Tech Firms:

It’s not just Amazon that’s bleeding money, the top five US tech companies by revenue have already lost nearly $4 trillion in market value so far this year, thanks to rising inflation and macroeconomic headwinds. Amazon and Microsoft Corp. were neck-and-neck in the race to breach the unwelcome milestone, with the Windows software maker close behind after having lost $889 billion from a November 2021 peak.

E-Commerce Slowdown:

The world’s largest online retailer has spent this year adjusting to a sharp slowdown in e-commerce growth as shoppers resumed pre-pandemic habits. Its shares have fallen almost 50% amid slowing sales, soaring costs and a jump in interest rates. Since the start of the year, co-founder Jeff Bezos has seen his fortune dwindle by about $83 billion to $109 billion.

Recently, Amazon projected the slowest revenue growth for a holiday quarter in the company’s history as shoppers reduce their spending in the face of economic uncertainty. That sent its market value below $1 trillion for the first time since the pandemic-fueled rally in tech stocks more than two years ago.

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Piyush Shukla

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