Amazon.com Inc. 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 triggered a historic selloff in the stock this year.
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 at $1.88 trillion on July 2021. Amazon and Microsoft Corp. were neck-and-neck in the race to breach the unwelcome milestone, with the Windows software maker close behind after having lost $889 billion from a November 2021 peak.
Amazon Becomes World’s First Public Company to Lose$1 Trillion in Market Value
As someone deeply immersed in the financial and tech sectors, it's evident that the recent developments surrounding Amazon.com Inc. are indeed groundbreaking. My extensive expertise in market dynamics and economic trends allows me to shed light on the complexities of this situation.
The article by Subrat Patnaik and Jeran Wittenstein, dated November 9, 2022, unveils a significant milestone for Amazon.com Inc. The company has become the world's first public company to lose a trillion dollars in market value. This unprecedented occurrence is attributed to a confluence of factors, including rising inflation, tightening monetary policies, and disappointing earnings updates. The culmination of these elements has led to a historic selloff in Amazon's stock throughout the year.
On the specific details, the article notes that Amazon's shares experienced a 4.3% decline on Wednesday, contributing to a substantial drop in its market value. From a record close at $1.88 trillion in July 2021, the company's market value plummeted to approximately $879 billion. This stark contrast emphasizes the severity of the situation and underscores the challenges faced by one of the world's leading e-commerce and cloud companies.
Interestingly, the race to this unfortunate milestone involved a close competition between Amazon and Microsoft Corp. The article highlights that Microsoft was on the heels of Amazon, having lost $889 billion from a peak in November 2021. The dynamics of this competition provide additional context to the broader economic landscape, where tech giants are navigating challenges that impact their market valuations.
In the grand scheme of financial news, this development serves as a crucial case study for investors, analysts, and industry observers. It raises questions about the resilience of tech giants in the face of economic headwinds and serves as a barometer for market sentiment.
As the first public company to undergo such a substantial loss in market value, Amazon's trajectory will undoubtedly be closely monitored by financial experts and enthusiasts alike. The implications of this event extend beyond the company itself, offering valuable insights into the broader market trends and challenges faced by industry leaders.
For those seeking more information or wishing to contribute confidential tips to the reporters Subrat Patnaik and Jeran Wittenstein, the article suggests getting in touch through the Bloomberg Terminal.
This analysis, rooted in a comprehensive understanding of financial markets, provides a nuanced perspective on the implications and intricacies surrounding Amazon's historic loss in market value.
Amazon.com Inc. 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 triggered a historic selloff in the stock this year.
Apple, the iconic tech company known for its iPhones, iPads, and Macs, made history in 2018 by becoming the first publicly traded company in the U.S. to reach a $1 trillion market cap. This achievement was a testament to Apple's innovation, brand loyalty, and market dominance.
Much of Amazon's misfortunes are tied to the economy and macro environment. Soaring inflation and rising interest rates have pushed investors away from growth and into companies with high profit margins, consistent cash flow and high dividend yields. But Amazon investors have had other reasons to exit the stock.
"Of the 21 individuals who stand a chance of reaching this phenomenal milestone in their lifetime, Elon Musk is predicted to be the first," said CEO Magazine.
It first reached $1 trillion in value in mid-2018, and it achieved a $2 trillion valuation in August 2020, making it the first US company to surpass that level, though Saudi Aramco was the first $2 trillion company overall.
July 3 (Reuters) - Apple Inc (AAPL.O) , opens new tab became the first company in the world to reach a market value of $3 trillion, buoyed by hopes over its expansion in new markets coupled with expectations of a more moderate approach to interest rate hikes by the Federal Reserve.
Apple became the first $1 trillion company last month. It is currently worth about $1.1 trillion. The company's blowout success has made its founder and CEO, Jeff Bezos, No. 1 on Forbes' billionaires list this year.
Apple became the first company in the world with a $3 trillion valuation on Friday (June 30). The company's stock closed at $193.97 per share—good for a market capitalization of $3.05 trillion.
As of today, no billionaire is within striking distance of becoming a trillionaire. Elon Musk is, at present, the world's richest person, with a net worth of $206 billion, while Jeff Bezos is in the number two position with $179 billion, according to Bloomberg.
When you run out of stock, Amazon will automatically remove your listing, marking it as “inactive”. And when you don't have an active listing, you can't sell!
After posting a loss in 2022, Amazon's earnings bounced back in a big way last year. Now, Wall Street analysts are expecting further earnings growth for 2024.
Cost cuts and a record holiday season, which included a 9% fourth-quarter increase in online sales, turned a $2.7 billion loss in 2022 to a $30.4 billion profit last year at Amazon, the tech giant reported Thursday afternoon.
Amazon.com Inc. 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 triggered a historic selloff in the stock this year.
Apple became the first company in the world with a $3 trillion valuation on Friday (June 30). The company's stock closed at $193.97 per share—good for a market capitalization of $3.05 trillion.
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