This week Amazon became first public company ever to lose over $1 trillion in value. It earned this distinction when its market cap dipped to $879 billion on Wednesday, down from its peak of $1.88 trillion in July 2021, according to Bloomberg.
By market close Friday, Amazon’s market cap had already perked back up, topping $1.02 trillion. But the record it set Wednesday will live on.
Amazon isn’t the only company feeling the impact of a shaky economy and a return to life outside the home after the initial COVID-19 lockdowns. Microsoft’s market value peaked at around $2.5 trillion and sat at $1.84 trillion as of market close Friday. Meta, formerly known as Facebook, reached just over $1 trillion in value in August 2021 and sat just under $300 billion as of market close Friday. The Dow Jones Industrial Average is down 7% since the start of 2022 but has been lower at times this year.
Other sectors are hurting too. Video game sales are expected to fall overall in 2022. Likewise, media streamers boomed in 2021, but giants like Netflix are looking for more revenue amid financial instability.
Amazon CEO Andy Jassy recently launched a cost-cutting review of the company, The Wall Street Journal reported Thursday. That apparently includes suspending or eliminating unprofitable projects and reassigning employees. Amazon is also taking a close look at its device business, which includes Alexa-enabled smart speakers, the report noted.
Amazon did not respond to request for comment.
