Record loss: Amazon depreciates by trillion from highs. Something never seen in history
Amazon became the first publicly traded company in history to lose $ 1 trillion in market valuation in a volatile economic environment that triggered a large downturn in the tech sector.
The company founded by Jeff Bezos, valued nearly $ 1.88 trillion on July 2021, saw its shares drop 4.3% on Wednesday, sending its market value down to $ 878 billion. The Amazon stock has lost almost 50% of its value this year alone and, despite yesterday's 10% rebound, it has not returned to exceed 1 trillion.
The loss comes shortly after Amazon's market value dropped below $ 1 trillion on November 1, after the company posted disappointing results in its third quarter and forecast unspectacular sales for the upcoming and important. Christmas shopping season.
Amazon posted revenue of $ 127.1 billion in the third quarter, narrowly missing analysts' forecasts of $ 127.5 billion, while net income fell to $ 2.9 billion, or 0, $ 28 per share, down about 9% from the third quarter of the previous year.
The e-commerce giant also forecasted the slowest fourth-quarter growth ever, with growth of between 2% and 8% compared to the fourth quarter of 2021.
Fears of recession are growing
The pessimistic forecasts come as fears of a recession rise due to skyrocketing inflation that many believe will result in weaker sales this year as consumers cut spending and tighten their balance sheets.
"Obviously a lot is happening in the macroeconomic environment and we will balance our investments to be more efficient without compromising our key long-term strategic bets," said Andy Jassy, Amazon's chief executive, following the third quarter earnings report. .
"What will not change is our obsessive focus on the customer experience, and we feel confident that we are ready to deliver a great customer experience this holiday shopping season."
Amazon saw its business grow during the COVID-19 pandemic, with a surge in online shopping, but has now joined other tech giants like Google and Microsoft who have seen their share price plummet this year into a widespread stock market.
According to Bloomberg, the top five US technology companies by revenue have combined nearly $ 4 trillion in market value.
Brian Olsavsky, Amazon's chief financial officer, said in a phone call to reporters following the most recent findings that the company would "take actions to tighten its belt, including suspending hiring in certain businesses and shutting down products and services. ".
Covid and online sales had abnormally inflated the business of Amazon and all other online activities, all accompanied by the expansionary US monetary policy. Now the party is over, interest is high and people have less money in their pockets and the high-tech bubble is starting to end.
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Article Record Loss: Amazon Deprecates Trillion From Highs. Something never seen in history comes from Economic Scenarios .
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/perdita-record-amazon-si-svaluta-di-mille-miliardi-dai-massimi-una-cosa-mai-vista-nella-storia/ on Thu, 10 Nov 2022 21:07:56 +0000.