Here’s Why Amazon market shares fall below $1 trillion for the first time since 2020
Amazon.com Inc. shares fell on Tuesday, bringing the e-commerce and cloud computing company’s market value below $1 trillion for the first time since the early days of the Covid-19 pandemic more than two years ago. The Amazon Stock Price fall 5.5% to $96.79, giving it a market capitalization of $987.4 billion. The stock closed at its lowest level since April 2020, and it has dropped 42% this year. The Amazon market cap of nearly $1.9 trillion was at its peak on November 18. It was Amazon’s fifth consecutive negative session, with Amazon stock down roughly 20% over the period. The Nasdaq 100 Index, meanwhile, fell 1%. The Seattle company’s earnings report last week, which forecast the slowest holiday-quarter growth in its history, fueled recent weakness. Amazon, which had previously reported record profits during the pandemic, predicted that sales would rise only by 2% to 8% during what has traditionally been its peak season.
Concerns about slowing growth and rising interest rates have weighed on Amazon and most other major technology and internet stocks throughout 2022. The uncertainty in the economy has weighed on the multiples of high-value stocks.