Amazon’s Historic Value Loss - A first in the US Market

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.

Amazon Becomes World’s First Public Company to Lose $1 Trillion in Market Value

Amazon.com Inc. 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.

BloombergSubrat Patnaik

Amazon Lost $1 Trillion in Market Cap—the Biggest Drop in U.S. History

Amazon’s market capitalization fell below $900 billion on Wednesday. The total loss of value for Amazon stock is truly eye-popping.

BarronsAl Root