E-commerce Giant Amazon Becomes World¡¯s First Public Company To Lose $1 Trillion In Market Value

Amazon has become the world¡¯s first public company to lose $1 trillion in market value. This is because of a historic selloff in Amazon¡¯s stock this year, which was triggered amid rising inflation, tightening monetary policies, and disappointing earnings updates.

Shares of the e-commerce giant had fallen 4.3% on Wednesday, thus pushing its market value to about $879 billion, vs. a record value of $1.88 trillion in July 2021, indicating a massive $1 trillion drop in just 16 months.

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Amazon and Microsoft Corp. were neck-to-neck in the race to breach the unwelcome milestone of losing a trillion dollars in market value, with the latter close behind after having lost $889 billion from a November 2021 peak, as per a Bloomberg report.

While technology and growth stocks have bled heavily and been punished throughout the year, fears of a global recession have further dampened the sentiment in the sector. The top 5 US technology companies by revenue have lost nearly $4 trillion in market value this year.

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Amazon Shares' Bloodbath

For Amazon, it's been a bloodbath year. After hitting the $879 billion mark on Wednesday, which pushed its market value loss to $1 trillion, Amazon managed to climb up a bit yesterday, with its market cap at $985.79 billion (on NASDAQ) and shares soaring 12%. But still,

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The world¡¯s largest online retailer has spent this year adjusting to a sharp slowdown in e-commerce growth as shoppers resumed their pre-pandemic habits. Since the start of 2022, Amazon co-founder Jeff Bezos has seen his fortune fall by $72 billion, with his current net worth being $120 billion, according to Bloomberg Billionaires Index data.

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Earlier last month, Amazon reportedly projected the slowest revenue growth for a holiday quarter (Oct-Dec) 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-fuelled rally began in tech stocks more than two years ago.

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