Amazon becomes first public company to lose $1 trillion
November 10, 2022 - Amazon has become the world’s first public company to lose $1 trillion in market value – the equivalent of twice the GDP of Belgium.
Over the past year, Amazon.com has witnessed an historic sell-off in its stock, fuelled by rising inflation, tightening monetary policies and disappointing earnings.
From a peak market capitalisation of $1.88 trillion in May 2021, Amazon has seen a slide in value, mostly occurring in 2022, to $878.77 billion – the world’s first public company to lose a trillion dollars in market value.
In October, Amazon projected the slowest revenue growth for the Christmas period in the company’s history, as shoppers tighten their purse strings in the face of economic uncertainty.
Amazon has spent 2022 adjusting to a sharp downturn in e-commerce growth as consumers return to pre-pandemic shopping habits. Its shares have fallen by half as slowing sales, soaring costs and hikes in interest rates all take their toll.
Similarly, billionaire co-founder Jeff Bezos has seen his fortune dwindle by 43% throughout the year – down to $109 billion.