Amazon loses $ 1,000 billion in capitalization, unheard of

17


While 2021 was the year of all records for the tech giants, in 2022, they are overtaken by inflation, the energy crisis, and the consequences of the war in Ukraine.
Among these giants, Meta is one of the biggest losers (in terms of proportion of its market capitalization). Moreover, recently, Mark Zuckerberg’s company decided to lay off 11,000 employees in order to reduce its expenses.

1,000 billion dollars evaporated by the crisis

For its part, Amazon has just recorded a sad record, losing more than 1,000 billion of its capitalization. E-commerce saw strong growth in 2020, and then again in 2021. And at its peak, in July 2021, Amazon’s market capitalization had reached $1.88 trillion (1 trillion).

A year later, the e-commerce giant is overtaken by the crisis, as well as the stock market. As Bloomberg reports, on Wednesday, Amazon stock fell 4.3% to a capitalization of $879 billion. And if we compare to the value recorded in July 2021, it is indeed 1,000 billion dollars of capitalization that has flown away.

As mentioned in a previous article, Apple is doing better than other major tech players. But according to Bloomberg, the combined capitalization loss of the 5 largest US tech companies is approaching $4 trillion.

Moreover, like Amazon, Microsoft has lost a lot. Compared to the record value of its capitalization in November 2021, the Redmond firm would have lost 889 billion dollars.

It’s simple, people consume less

Two weeks ago, Amazon presented disappointing quarterly results. And unfortunately, when it comes to e-commerce (since Amazon has other businesses, including the cloud), the outlook is not very optimistic.

During the traditional conference call, the boss of the company, Andy Jassy, ​​confided that it is not sure “how consumer spending will evolve during the holiday season.”

Normally, this is a good time for consumption. However, with inflation, people might scale back their spending, which will affect Amazon’s future bottom line. And like most digital players, Amazon is looking to cut costs.

Naturally, the collapse in Amazon’s market capitalization led to a collapse in the fortunes of its founder, Jeff Bezos. According to Bloomberg, it has already lost $83 billion since the start of the year.

Amazon Prime Video
Leave A Reply

Your email address will not be published.

rabit tradon seo tool seo hyperlink with keyword generate reset