Diversified giant Amazon.com has become the first public company in history to have lost more than $1 trillion in value. This came amid rising inflation, tightening monetary policy and disappointing earnings reports for shareholders. All of these factors led to a massive sell-off of shares this year, which, among other things, led to a decline in the company’s value.
Amazon shares fell 4.3% on Wednesday, pushing its market cap down to $879 million. As of July 2021, the company was valued at $1.88 trillion and is now the first to surpass $1 trillion lost value. However, Microsoft is literally sitting behind her. The latter, which peaked in November 2021, lost $889 billion.
Although tech stocks have already fallen sharply over the year, fears of a recession have only exacerbated the situation in the industry. The top five tech companies by profitability collectively lost about $4 trillion in 2022.
The world’s largest online retailer is struggling to adapt to a changing environment — a rapid slowdown in e-commerce market performance as customers return to pre-pandemic habits. Overall, Amazon shares fell nearly 50% on the back of declining sales. According to Bloomberg, the fortune of one of the company’s founders, Jeff Bezos, has shrunk by around $83 billion to $109 billion since the beginning of this year.
Last month, Amazon forecast the slowest holiday sales growth in the company’s history as shoppers significantly cut spending amid economic uncertainty. Collectively, the company’s market value has fallen by $1 trillion from its record pandemic levels.