Amazon becomes the first U.S public company to lose $1 trillion of its market value. The decline in earnings is a consequence of inflation, stringent fiscal policies, and an unprecedented drop in revenue.
Bloomberg reports that the company recorded a 4.8% drop in share price, equating to an $879 billion loss in market value on Wednesday. The plunge comes after the company recorded peak earnings worth $1.88 trillion in July 2021.
According to Barron's, the share price, which closed at $86.14, is the lowest recorded in the last 52 weeks. In July 2021, Amazon proceeded head-to-head with Microsoft, whose market value peaked at $2.5 trillion.
The drop in market share value remains uniform across the board for most tech companies, including Microsoft and Meta. However, Amazon's loss sets a record that will remain unmatched over a long period.