It’s about time something finally happened to that big, invasive tech company. Amazon has been monopolizing the market for far too long.
Moreover, we’ve seen how Jeff Bezos disregarded the safety of his workers and customers…
Losing a trillion dollars is a start, but it’s not nearly enough justice.
Amazon Loses $1 Trillion
Amazon became the world’s first public company to lose $1 trillion in market value. This is due to rising inflation, tightening monetary policies, and disappointing earnings updates.
Amazon shares fell 4.3%, pushing its market value down to $879 billion. Microsoft was close behind, with $889 billion in value lost from a November 2021 peak.
The company’s market value was nearly $1.9 trillion in July 2021 but has since lost around 48% of its value this year alone.
The stock is far from July 2021, when the company’s market cap almost touched $1.9 trillion, per Bloomberg.
Amazon’s market value fell below the $1 trillion mark on November 1. These are the days after the company posted mixed third-quarter earnings. Moreover, this is projected as the company’s slowest fourth-quarter growth ever.
It’s not just Amazon that’s bleeding money. Bloomberg reports that the top five US tech companies by revenue have already lost nearly $4 trillion in market value so far this year… thanks to rising inflation.
Amazon CFO Brian Olsavsky shared his thoughts during an interview with Reuters. He said, “We see signs all around that. People’s budgets are tight, inflation is still high, and energy costs are an additional layer on top of that caused by other issues. We are preparing for what could be a slower growth period, like most companies.”
Moreover, Tech editor Dan Howley outlines Amazon’s latest plans on their budget. He said on Yahoo, “These could be large-scale cuts. We know they’re already trying to trim down their warehouse space. They’re trying to lease out some of those facilities and even cut back on plans to build new ones. That is before what we’re hearing now.”
Howley also thinks that Amazon is considering cutting costs to save money. This includes trimming down the warehouse space and reducing investment in Alexa. We have, obviously, interest in potential cutbacks on the Alexa side of things… which loses money for them because they just want to get the hardware in your house, so you start talking to Alexa and then sign up for Prime. So that’s a loss leader for them.”
One more thing that affected Amazon’s massive loss is current macroeconomic factors. Howley said, “We have some quotes from spokespeople at Amazon saying, ‘Our senior leadership team regularly reviews our investment outlook and financial performance… including as part of our annual operating plan review… which occurs in the fall each year. As part of this year’s review, we’re, of course, taking into account the current macro-environment and considering opportunities to optimize costs.’”
Big tech companies like Amazon need to be reeled back in when they step out of line. Amazon is a company that has done just that. Losing $1 trillion is a harsh lesson, but it’s one that Amazon needs to learn.
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