Amazon becomes the first company to lose $ 1 trillion in valuation

Where will the collapse of the Amazon stock market end? 16 months ago, in July 2021, the world’s number one in ecommerce and cloud battled Apple and Microsoft for the title of the largest global valuation. At the time, Amazon was worth $ 1.880 billion. Patatras: On November 9, 2022, the company founded by Jeff Bezos showed “only” a valuation of $ 879 billion. The company pulls out a record that would have done well, that of being the first to suffer a valuation loss of more than $ 1 trillion. Its value has fallen by 48.3% since January 1 and by 53.7% from the all-time high of July 9, 2021.

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Let’s put things in perspective: Amazon is still in the world top 10 and if its fall is spectacular it is also because the company has reached peaks accessible to few others: only Apple, Google, Microsoft, Saudi Aramco, Meta (Facebook) and Tesla has already hit, some very briefly – Meta and Tesla – the $ 1 trillion valuation bar.

In a difficult macroeconomic environment, Amazon’s fall on the stock market is explained by a combination of unfavorable factors. The the rise in inflation, the strong dollar and the tightening of monetary policies have a direct impact on household consumption, including e-commerce, which is its main activity. His second business, the cloud, which remains his main source of profit, is also suffering from lower-than-expected growth. Consequence: Amazon’s third-quarter results, released Oct. 28, did not meet analysts’ expectations. And the price has dropped 29% since that date, especially as the market is seeing a slowdown in e-commerce growth following the post-Covid explosion.

In general, the tech giants are experiencing a return to Earth in 2022 after the crazy two years of Covid, of which they were the only big winners. With the exception of Apple, most other tech companies are gradually returning to pre-pandemic assessment levels. Thus, the Amazon stock, which is worth about $ 90, returned to the level of February-March 2020, before the first confinement. Since the beginning of the year, the group’s co-founder Jeff Bezos has seen his fortune shrink from about $ 83 billion to $ 109 billion, according to data compiled by Bloomberg.

Amazon market sanctions after quarterly results below expectations