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Amazon Loses $1 Trillion In Market Value During Tech Stock Rout

Leading American firm Amazon has turned into the first-ever public organization to lose out on a staggering market value worth $1 trillion. The news comes during a tech stock rout as recently unveiled by Bloomberg.

This is the equivalent of losing out on tech giant Google’s parent firm Alphabet which is now worth a mega $1.13 trillion.

The global leader in terms of online retailers’ stock price shut at 4.3% which was equal to $86.14 on Wednesday. This took its market capitalization to nearly $879 billion.

The shares fell by around 48% of the total value during this year and it’s a huge cry from what was seen in July of 2021. This is when the firm’s market cap reached around $1.9 trillion as confirmed by sources at Bloomberg.

The market price for Amazon dropped to a shocking figure that was way below the $1 trillion mark at the start of this month. This was just a few days after the firm put up a mixed third-quarter earnings report and even put out the firm’s slowest growth for Q4 ever.

But it is not only Amazon that is feeling the pressure of a mega loss as America’s leading five US tech firms in terms of revenue had lost around $4 trillion of market value during the year. A lot of it had to do with the likes of inflation and some major changes in the world’s economic conditions, again as revealed by Bloomberg.

Currently, we’re seeing all sorts of signs during that time and people’s budgets are quite tight. Similarly, the rates of inflation are super high and the price of energy-related expenses really does add a whole new level of worry altogether.

Recently, the company’s CFO mentioned during a call to journalists how Amazon was paving the way for a period where slow growth is anticipated and it’s very similar to what other tech firms are going through during this period of uncertainty.

Meanwhile, the fall in Amazon’s stock prices has also caused a major hit to the company’s own founder. Today, Jeff Bezos has slipped down in terms of his net worth, making him the fourth richest individual in the world. He is reportedly worth $113 billion, although he did begin the year at a high of $192 billion, as confirmed by the Billionaire’s Index from Bloomberg.

Photo: INA FASSBENDER/ AFP via Getty Images

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