Amazon, the world’s largest online retailer, has become first company ever to lose USD 1 trillion in market value, according to Bloomberg. It is akin to losing Google parent Alphabet’s worth of market value. Alphabet is now valued around USD 1.13 trillion.
On Wednesday (November 9), Amazon’s share price closed 4.3 per cent lower at USD 86.14. This took the company’s market capitalisation to USD 879 billion.
This year up to now, Amazon’s stock has already lost about 48 per cent of its value. This is quite a contrast from its price in July 2021. At that time, the company’s market cap had touched USD 1.9 trillion.
The company’s market value fell below USD 1 trillion mark at the start of this month.
Top five US tech companies are bleeding money. Together, they have already lost about USD 4 trillion in market value. Rising inflation and macroeconomic reasons are being reported to be the cause.
“We are seeing signs all around that, again, people’s budgets are tight, inflation is still high, energy costs are an additional layer on top of that caused by other issues,” Amazon CFO Brian Olsavsky told the reporters in a call on October 27, as per Reuters. “We are preparing for what could be a slower growth period, like most companies.”
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