Amazon.com is the world’s first public company to lose a trillion dollars 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.
Shares in the e-commerce and cloud company fell 4.3 per cent on Wednesday, pushing its market value to about $US879 billion ($1.37 trillion) from a record close at $US1.88 trillion on July 2021. Amazon and Microsoft were neck-and-neck in the race to breach the unwelcome milestone, with the Windows software maker close behind after having lost $US889 billion from a November 2021 peak.
Amazon boss Jeff Bezos has seen his fortune shrink as his company’s stock lost almost 50 per cent.Credit:Bloomberg
While technology and growth stocks have been punished throughout the year, fears of a recession have further dampened sentiment in the sector. The top five US technology companies by revenue have seen nearly $US4 trillion in market value evaporate this year.
The world’s largest online retailer has spent this year adjusting to a sharp slowdown in e-commerce growth as shoppers resumed pre-pandemic habits. Its shares have fallen almost 50 per cent amid slowing sales, soaring costs and a jump in interest rates.
Since the start of the year, co-founder Jeff Bezos has seen his fortune dwindle by about $US83 billion to $US109 billion, according to data compiled by Bloomberg.
Last month, Amazon projected the slowest revenue growth for a Christmas quarter in the company’s history as shoppers reduce their spending in the face of economic uncertainty.
That sent its market value below $US1 trillion for the first time since the pandemic-fuelled rally in tech stocks more than two years ago.
The Business Briefing newsletter delivers major stories, exclusive coverage and expert opinion. Sign up to get it every weekday morning.
Most Viewed in Business
Source: Read Full Article