The market capitalization of e-commerce and cloud computing behemoth Amazon.com Inc. dipped below $1 trillion on Tuesday for the first time since the beginning of the Covid-19 outbreak more than two years ago.
The stock lost 5.5% to close at $96.79, giving it a $987.4 billion market valuation. The price of the stock fell to its lowest point since April 2020, and it has fallen 42% this year. Amazon’s market capitalization reached a high of around $1.9 trillion on November 18.
Amazon had its fifth consecutive down session, losing roughly 20% throughout that time. The Nasdaq 100 Index, however, decreased 1% on Tuesday.
The Seattle company’s earnings report from last week, in which it predicted the worst holiday-quarter growth in its history, served as the catalyst for the recent decline. Amazon, which had experienced record profits during the pandemic, predicted that during what has historically been its peak season, sales will only rise by 2% to 8%.
Concerns about slowing growth and rising interest rates have put pressure on Amazon throughout 2022, along with the majority of other key technology and internet firms. The multiples of high-value stocks have suffered because of the economic unpredictability.
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