Amazon’s stock has fallen 51 percent this year and is worth less than $1 trillion.
2022 was a very difficult year for Amazon; Because the company’s stock experienced its worst year since 2000. Amazon’s stock fell 51% in 2022, shedding hundreds of billions of dollars from the company’s market value. However, it performed better than Meta and Tesla.
According to CNBC, Amazon shares fell 51% in 2022, the biggest decline since 2000. At that time, the retail giant’s stock fell 80 percent. Amazon’s market value has risen from $1.7 trillion in early 2022 to about $847 billion. Amazon left the trillion-dollar club last month.
Rising inflation and rising interest rates have pushed investors away from growth and focused on companies with high-profit margins.
But Amazon investors had another reason to exit its shares. This company is facing a decrease in sales; Because the previous predictions that we will see the sustainable prosperity of e-commerce businesses in the post-corona era did not come true. At the height of the pandemic, consumers turned to online retailers like Amazon for everything from masks to furniture. This caused the company’s stock to reach its highest level by increasing sales.
But after the pandemic ends, consumers are returning to shopping in brick-and-mortar stores, which has dampened Amazon’s impressive revenue growth.
During the retrenchment of technology companies, Amazon started to retrench employees a few months ago, and the employees of Alexa and its cloud games have been fired. Amazon CEO Andy Jesse said in late November that there will be layoffs next year.