Amazon no longer belongs to the trillion dollar club.
The e-stock retailer’s fell 5.9% on Tuesday, marking the fifth straight day of declines. It closed at its lowest level since April 2020. The stock’s epidemic spike has almost entirely been erased by the sell-off.
Due to the company’s unimpressive fourth-quarter outlook released last week, investors have continued to penalise it. Amazon predicted revenue growth for the holiday quarter would be between 2% and 8% lower than it was expected to be by analysts. Amazon Web Services, the company’s cloud segment, also announced weaker-than-expected sales.
Since April 2020, Amazon’s market cap hasn’t fallen below $1 trillion. In 2022, the stock fell 42%, and it’s currently on track to have its worst year since 2008, when it fell 45%. The company lost 80% of its value during the dot-com meltdown of 2000, which was the only other year that was worse.
Amazon has struggled this year, much like the rest of Big Tech, as a result of the weakening economy, skyrocketing inflation, and rising interest rates. Additionally, Amazon has been forced to reduce its operations after experiencing significant growth during the pandemic. This is because customers have started visiting stores again.
In the Big Tech sector, Amazon has had the second-worst performance this year, trailing only Facebook parent Meta’s 72% decline. Last week, Meta informed investors that it was anticipated that the fourth quarter would see a third consecutive fall in revenue.