Amazon Becomes First Public Company To Face $1 Trillion Loss In Market Value

Amazon.com is the world's first publicly traded corporation to see its market value plummet by a trillion dollars.
Amazon Becomes First Public Company To Face $1 Trillion Loss In Market Value
Amazon Becomes First Public Company To Face $1 Trillion Loss In Market Value.

Amazon.com is the world's first publicly traded corporation to see its market value plummet by a trillion dollars. According to Bloomberg, this is due to a combination of increasing inflation, tightening monetary policies, and disappointing earnings reports, which prompted a record selloff in the stock this year.

It went on to say that Amazon's stock plummeted 4.3% on Wednesday, bringing its market worth down to $879 billion from a high of $1.88 trillion in July 2021. Microsoft also lost $889 billion from its top in November 2021. This year, the top five US technology businesses by sales have seen a $4 trillion increase in market value.

Amazon's stock recently fell 13%

Amazon's stock recently fell 13% after the business gave a poor fourth-quarter projection and failed revenue forecasts. According to Refinitiv IBES statistics, Amazon's net sales in the third quarter that ended September 30 were $127.1 billion, less than analysts' projections of $127.46 billion. The world's largest online retailer forecasts net sales of between $140 billion and $148 billion for the Christmas quarter, compared to projections of $155.15 billion.

Operating income fell to $2.5 billion in the third quarter

Operating income fell to $2.5 billion in the third quarter, down from $4.9 billion in the same period in 2021. Net income fell to $2.9 billion, or $0.28 per diluted share, in the third quarter of 2021, from $3.2 billion, or $0.31 per diluted share, in the previous quarter.

Free cash flow declined to a $19.7 billion outflow for the trailing twelve months, compared to a $2.6 billion inflow for the trailing twelve months ending September 30, 2021.

"There is certainly a lot occurring in the macroeconomic climate," said Amazon CEO Andy Jassy, "and we'll balance our investments to be more efficient without jeopardizing our major long-term, strategic commitments." What will not change is our fanatical emphasis on the customer experience, and we are certain that we will provide a terrific experience for customers over the holiday shopping season."

Amazon Becomes First Public Company To Face $1 Trillion Loss In Market Value
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