Amazon becomes the first company to lose $1 trillion of its market value

This hasn’t been an easy time for the tech companies, however, up until this point it was difficult to grasp the full extent of the struggle. Amazon’s shares fell 4.3%, dropping the market capitalization to a new low of $879 billion. This marked an alarming turn. Since the high in June 2021, when Amazon’s market capitalization had reached $1.88 trillion, it lost almost a trillion dollars from its market value.

Amazon is not the only one to have taken a beating. Microsoft was in a neck-to-neck race to rock bottom together with Amazon. In comparison with the peak valuation in November 2021, the latest drop plunged down the number by $889 billion.

There are countless reasons behind the downturn – aggregate economic slowdown, the looming recession and inflation. However, people’s habits are also changing, as they spend less time in front of the computer than in the previous two years.

Likewise, people are adjusting their spending habits and are attempting to cut back on Christmas spendings in the face of increasing economic uncertainty. As a result of this sentiment, Amazon has projected the slowest revenue growth for a holiday quarter in the company’s history.