The e-commerce giant Amazon became the world’s first listed company to lose 1 trillion US dollars in market value, due to this year’s rising inflation and tighter monetary policy, the disappointing earnings report sparked a historic sell-off in the company’s stock.
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As of Wednesday’s U.S. stock market close, Amazon’s shares fell 4.3%, causing its market value to slip to about $879 billion from a record closing level of $1.88 trillion in July 2021, wiping $1 trillion off its market value.
Amazon and Microsoft Corp. have been in a “race” to break the unpopular milestone, with Microsoft “slightly behind” losing $889 billion in market value from its November 2021 peak.
While technology and growth stocks have been taking a beating throughout the year, recession fears have further dampened sentiment in the sector. The top five U.S. tech companies have collectively lost nearly $4 trillion in market value this year by revenue.
Amazon has been adjusting to a sharp slowdown in e-commerce growth this year as shoppers return to their pre-pandemic habits. Amazon shares fell nearly 50% amid slowing sales, soaring costs, and soaring interest rates. Amazon co-founder Jeff Bezos has lost $83 billion in wealth since the start of the year, leaving him with $109 billion, data show.
