Sometimes a little perspective is needed to really drive home the magnitude of a specific statistic. That's the case with the gigantic losses tallied by Apple and Amazon last year.
The two stocks were the biggest losers of market cap in 2022. Apple shed $846.34 billion in value and Amazon lost $834.06 billion. Market cap measures the combined value of all of a company's stock.
The value shed by each of the two companies dwarfs the total size of other household tech stocks. Bespoke Investment Group called the numbers "staggering" in a tweet.
Amazon's stock sunk as the company's earnings floundered and fourth-quarter guidance was dispiriting. Its performance was in line with the tech sector more broadly, which has been hurt by rising interest rates, slowing internet advertising and other factors.
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Despite being one of the few big tech names to avoid an earnings plunge, Apple still struggled as questions swirled around the popularity of its new products and it faced difficulty with iPhone 14 shipments during the holiday season due to Covid-19 restrictions at its main China factory.
The personal tech titan also has slowed the pace of hiring along with others in the sector as concerns grew over a potential recession, which could dilute demand as consumers delay purchases of big-ticket items to save money. Apple stock shed 3.7% in trading Tuesday — hitting a 52-week low as its market cap fell below $2 trillion for the first time since May.
But what can get lost in the data is just how large these two companies are within the stock market. Compared with peer Meta Platforms' $315.56 billion year-end market cap, Amazon was more than twice the size at $856.94 billion. On Dec. 30, Apple was multiple times that size at $2.067 trillion.
In fact, what each of the two stocks shed in one year alone is more than double the size of Meta's complete market cap.
That $830 billion loss alone is the equivalent of
As an enthusiast well-versed in financial markets and tech industry dynamics, I can provide in-depth insights into the concepts and events mentioned in the article.
The article primarily discusses the significant market cap losses incurred by tech giants Apple and Amazon in 2022. Market capitalization (market cap) refers to the total value of a company's outstanding shares of stock. It is calculated by multiplying the current stock price by the total number of outstanding shares. In this context, both Apple and Amazon experienced substantial decreases in market cap, with Apple shedding $846.34 billion and Amazon losing $834.06 billion. These losses were notably larger than the entire market capitalization of many other prominent tech companies.
The piece mentions the challenges faced by these companies, including Amazon's declining stock due to disappointing earnings and guidance, influenced by broader issues in the tech sector such as rising interest rates and slowing internet advertising. Meanwhile, Apple encountered difficulties related to product popularity concerns and disruptions in iPhone 14 shipments caused by Covid-19 restrictions at its primary China factory. Both companies also experienced concerns tied to economic recession fears, resulting in Apple's stock hitting a 52-week low and falling below a $2 trillion market cap for the first time since May.
The article emphasizes the sheer magnitude of the losses by comparing them with the market caps of other companies. For instance, Amazon's year-end market cap was significantly larger than that of Meta Platforms, while Apple's market cap was multiples higher than Amazon's. The losses suffered by Apple and Amazon individually in one year exceeded the entire market cap of other notable companies like PayPal, Intel, Snowflake, and Rivian.
Overall, the article highlights the enormous financial impact of the market cap losses experienced by Apple and Amazon in 2022, underscoring their dominance in the tech industry and the scale of their decline compared to their peers.
If you have any further questions or need deeper insights into specific aspects of this topic, feel free to ask!
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