Amazon plunges in the stock market: 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 that triggered a historic selloff in the stock this year.
🔥Do you want to know more about international commerce and e-commerce, and also get all the tips and news that might give your company an edge? Subscribe to Cross-Border Magazine and get your digital copy now for free!🔥
Shares in the e-commerce and cloud company fell 4.3% on Wednesday, pushing its market value to about $879 billion from a record close of $1.88 trillion on July 2021.
The world’s largest online retailer has spent this year adjusting to a sharp slowdown in e-commerce growth as shoppers resumed pre-pandemic habits. Its shares have fallen almost 50% amid slowing sales, soaring costs, and a jump in interest rates. Since the start of the year, co-founder Jeff Bezos has seen his fortune dwindle by about $83 billion to $109 billion, according to data compiled by Bloomberg.
Shares of Amazon (AMZN -4.27%) finished down 9% last month, according to data provided by S&P Global Market Intelligence.
Disappointing fourth-quarter guidance in the third-quarter earnings report was the main reason for the stock's decline, but there were a number of other news items showing the company shifting into cost-savings mode as it announced hiring freezes or even full-on closures of some smaller divisions.
The stock tracked with the S&P 500 for most of the month but then diverged sharply when its earnings report came out.
The big news last month and the reason the stock plunged 7% on Oct. 28 was that the company expects revenue to increase just 2% to 8% in the fourth quarter. Though that includes a foreign currency headwind of 460 basis points, the guidance signals that this will be the slowest-growth holiday quarter in the company's history.
Like its FAANG stock peers, the company cited macro headwinds for the slower growth, but Amazon may also be reaching a point where it's too big to put up the kind of growth numbers that investors are used to as revenue is set to top $500 billion this year.
By continuing to use the site, you agree to the use of cookies. more information
The cookie settings on this website are set to "allow cookies" to give you the best browsing experience possible. If you continue to use this website without changing your cookie settings or you click "Accept" below then you are consenting to this.
