Andy Jassy, chief executive officer of Amazon.Com Inc., speaks throughout the GeekWire Summit in Seattle, Washington, U.S., on Tuesday, Oct. 5, 2021.
David Ryder | Bloomberg | Getty Images
Amazon has exited the trillion-dollar club.
Shares of the e-retailer plunged 5.9% on Tuesday, falling for a fifth straight day and shutting at their lowest since April 2020. The sell-off has erased almost the entire stock’s pandemic surge.
Investors continued to punish the corporate for last week’s disappointing fourth-quarter forecast. Amazon said revenue throughout the holiday quarter would grow 2% to eight% over the year-ago period, far below analysts’ estimates. The cloud division, Amazon Web Services, also reported weaker-than-expected sales.
It’s the primary time Amazon’s market cap has been below $1 trillion since April 2020. The stock has plunged 42% in 2022 and is on pace for its worst yr since 2008, when it dropped 45%. The one other yr that was worse was throughout the dot-com crash of 2000, when the corporate lost 80% of its value.
Like the remainder of Big Tech, Amazon has struggled this yr resulting from a slumping economy, soaring inflation and rising rates of interest. On top of that, Amazon has been forced to reduce after expanding dramatically throughout the pandemic, now that buyers have returned to stores.
Amazon has been the second-worst performer within the Big Tech group this yr, behind Facebook parent Meta, which has plummeted 72%. Meta told investors last week that revenue within the fourth quarter would likely decline for a 3rd straight period.
— CNBC’s Annie Palmer contributed to this report.
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