Amazon Becomes the First Company in History to Lose $1 Trillion in Market Value

Amazon.com Inc. is the first public firm in the history of the world to have seen its market value fall by a trillion dollars as a result of a confluence of factors. These include tightening monetary policy, increasing inflation, and disappointing earnings reports.

Amazon is not the only corporation experiencing the effects of a weak economy and a return to work following the initial COVID-19 lockdowns. Microsoft’s market worth peaked at around $2.5 trillion and currently stands at $1.78 trillion. Meta, formerly known as Facebook, surpassed $1 trillion in value in August 2021 and is currently worth around $280 billion. Since the beginning of 2022, the Dow Jones Industrial Average has declined by more than 8%, but it has been lower at points this year.

Amazon Becomes the First Company in history to lose $1 Trillion in Market Value

Other industries are also suffering. In 2022, sales of video games are predicted to decline globally. Similarly, media streaming services flourished in 2021, but companies such as Netflix are seeking more revenue in the face of economic turmoil.

The Wall Street Journal reported on Thursday that Amazon’s CEO, Andy Jassy, has just initiated a cost-cutting investigation. This involves seemingly stopping or terminating unproductive initiatives and reassigning personnel. Furthermore,  Amazon is also examining its device business, which comprises Alexa-enabled smart speakers.

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