Amazon isn’t the only company to lose value after pandemic highs, but it’s the first to fall more than $1 trillion.
When Amazon‘s market valuation dropped to $879 billion on Wednesday from a high of $1.88 trillion in July 2021, it made history in an unhappy way. According to a prior Bloomberg story, it is the first corporation to ever have a market value loss of over $1 trillion.
Following the initial Covid-19 lockdowns, life has begun to return to normal outside of the home, and not just Amazon is experiencing the effects of this. Microsoft’s market worth is currently $1.78 trillion, down from its peak of roughly $2.5 trillion. The valuation of Meta, formerly known as Facebook, peaked at well over $1 trillion in August 2021 and is currently hovering around $285 billion. This year, the Dow Jones Industrial Average has fallen by a little over 8%, , but has been lower.
Video game sales are expected to fall overall in 2022. Likewise, media streamers boomed in 2021, but once stable giants like Netflix are looking for more revenue amid financial instability.
The Wall Street Journal reports that Amazon CEO Andy Jassy recently began a cost-cutting examination of the business. It appears to involve reassigning employees and stopping or ending unsuccessful projects. According to the article, Amazon is closely examining its device division, which includes Alexa-enabled smart speakers. The common gadgets’ future or any real-world effects on them have not yet been determined.
Amazon declined to comment on the matter.