Amazon lost a trillion dollars in market value this year as a combination of rising inflation, tightening monetary policy, and poor earnings updates prompted an unprecedented selloff in the stock.
The e-commerce and cloud company’s shares dropped 4.3 per cent in November, lowering its market value from a record close of $1.88 trillion in July 2021 to roughly $879 billion today.
Amazon and Microsoft were competing head-to-head to surpass the undesirable milestone, with Microsoft coming in second place after losing $889 billion since its November 2021 peak.
Amazon is now the world’s first publicly traded firm to lose a trillion dollars in market value.
It was reported in November that the market capitalisation tech giants; Google’s Alphabet, Apple, Microsoft, Amazon, and Facebook’s Meta all decreased by a combined $1.5 trillion within a month, according to a Tradingplatform.com report.
The Big Five digital firms lost a combined total of more than $1.5 trillion.
According to the report, the combined market cap of the tech companies plunged by 22 per cent in three weeks, falling from over $6.9 trillion to $5.36 trillion.
The world’s largest online retailer has spent this year adjusting to a significant downturn in e-commerce growth as customers resumed pre-pandemic routines. Its stock has dropped over 50 per cent as a result of declining sales, rising costs, and an increase in interest rates.
In October, the company’s growth weakened to its lowest rate of the year, in what would typically be the busiest period of the year.
