- This week, Amazon, Jeff Bezos giant store becomes world’s first public company to lose $1 trillion in market value
- Amazon market capitalization drops to $879 billion from $1.88 trillion
- Microsoft is not far behind with $889 billion in value lost
Jeff Bezos Everything store Amazon.com Inc,becomes the world’s public company to lose $1 trillion in market capitalization. The factors triggered it’s market capitalization includes a combination of tightening monetary policies, rising inflation and disappointing earning updates.
However, on Wednesday, the e-commerce and cloud company’s shares dropped 4.3%. Amazon reduced its market value from a record nearly $1.88 trillion in July 2021 to approximately $879 billion.
On the other hand, Microsoft corp and Amazon are the ones who were neck-and-neck in the race to break the unfavorable milestones. Whereas. Microsoft.Corp stands on just behind Amazon after losing $889 billion from a November 2021 peak.
“There is obviously a lot happening in the macroeconomic environment” , CEO, Andy Jessy said following the third-quarter earnings report. Therefore, we are trying to “balance our investments to be more streamlined without compromising our key long term, strategic bets.”
If we talk about technology and growth, we are witnessing a drastic change in market valuation happening from last four to five years. The giant companies are facing various economic and political issues which directly effects their sales and growth. Moreover, fears of a recession have further dampened sentiments in the sector, which has already been hit hard by the year-long circumstances of technology and growth stocks.
However, Amazon so far managed to avoid the eye-popping layoffs that have already impacted. According to the reports, during the year the big technology companies have faced massive decline in their sales and growth. This year, the top five US technology companies have faced around $4 trillion decline in market revenue.
After Covid-19, it was hard for consumers to come back to their normal purchasing patterns. However, this year customers are returning to their pre-pandemic purchasing patterns, the largest online retailer are trying to adjust a sharp slow down e-commerce growth.
Amazon’s shares dropped by nearly 50% due to the slowing sales, rising costs, and an increase in interest rates. According to the gathered information, co-founder Jeff Bezos wealth has decreased by about $ 83 billion to $109 billion.
Due to the uncertain economic situations, customers have changed their purchasing habits. Last month Amazon projected the slowest revenue growth in its whole venture period. The reasons have badly reflected on Amazon’s market value. Due to the fact, Amazon have faced $1 trillion drop in its market capitalization for the first time, since the pandemic hit the world.
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