American e-commerce giant has become the first public company ever to lose $1 trillion in market value as a combination of rising inflation, tightening monetary policies and disappointing earnings updates triggered a historic selloff in the stock this year, Bloomberg reported.
This came after the world's largest online retailer's share price dropped 4.3% on Wednesday and 48% so far this year amidst a slowdown in its core retail business, as consumers returned to shopping in stores, causing its market capitalization to slump to $879 billion, a ghastly fall from its $1.9 trillion peak in July 2021.
To put this in perspective, that's almost like losing Google parent Alphabet's worth of market value, which is now around $1.13 trillion.
The company had also earlier seen its market value decline below $1trillion on November 1, for the first time since tech stocks skyrocketed during the pandemic, after releasing poor revenue growth in its third quarter financial earning of 2022, and an outlook for the slowest revenue growth for a holiday quarter in the company’s history.
Amazon isn't the only company under fire amidst the inflationary environment and macroeconomic headwinds, the current tech rout has seen the top five US tech companies by revenue lose an eye-popping sum of $4 trillion so far this year.
"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, per Reuters. "We are preparing for what could be a slower growth period, like most companies."
Amazon's co-founder Jeff Bezos' net worth was also reportedly affected by the falling Amazon shares, losing over $80 billion in 2022 alone. The world's fourth richest person is now worth $109 billion after starting the year at $192.5 billion, according to the Bloomberg Billionaires Index.