Bloomberg, has published this Wednesday figures concerning the tech giants. Whether Amazon was getting closer to 2 trillion market value in July 2021today it fell below the symbolic bar of 1,000 billion dollars.
A difficult economic context for Amazon and the tech giants
Times are tough and the crisis continues for tech giants. Meta is the one with the biggest losses. Mark Zuckerberg’s company has announced the loss of more than 11,000 jobs to deal with the crisis. This tsunami is the consequence of worrying financial statements of the company since its change of strategy to bet on the metaverse.
Alphabet, Microsoft, Tesla or even Amazon, are not spared by the slowdown in the global economy. In this context, the e-commerce giant was forced, at the beginning of November, to pause recruitment on all of its activities.
The five largest US tech companies by revenue reportedly lost nearly $4 trillion in market value This year. Among them, Microsoft has nothing to envy to Amazon, since the company recorded its weakest growth since March 2017. The unfavorable economic context largely explains Redmond’s difficulties.
Shares of the e-commerce giant fell
Amazon unveiled on October 27 its financial statement for the third quarter of 2022 : the company shows an increase in its sales. Despite this good news, the e-commerce giant expects a slowdown in its growth, linked to economic uncertainty, during the holiday season. Its bleak prospects only weighed down the company. Amazon shares have thus fell 4.3% on Wednesdaybringing its market value to around $879 billion versus $1.9 trillion in July 2021.
Four years ago, Apple became the first company to hit the famous $1 trillion milestone in stock exchange. Some time later, this famous milestone was reached by several companies such as Amazon, Microsoft and even Meta. Now, in 2022, the opposite effect is happening: the tech giants are neck and neck to achieve the unwanted milestone.