- Amazon became the first publicly traded company in the world to see its market value drop by a trillion dollars.
- Factors that could lead to this include monetary policy tightening, rising inflation, and weak financial reporting.
- CEO Andy Jassy has launched a search for ways to reduce expenses.
As a result of a number of events, Amazon.com Inc. became the first publicly traded company in the world to see its market value drop by a trillion dollars. There are a number of factors that could lead to this, such as monetary policy tightening, rising inflation, and weak financial reporting.
Businesses across the board are feeling the effects of the weakening economy and the subsequent return to work following the initial COVID-19 lockdowns, and Amazon is no exception.
The current market cap of Microsoft is $1.78 trillion, down from its all-time high of almost $2.5 trillion. The valuation of Meta, formerly known as Facebook, has increased to roughly $280 billion since it crossed $1 trillion in August 2021. The Dow Jones Industrial Average is down more than 8% since the start of 2022, and it has gone even worse at times this year.
A number of other sectors are feeling the effects as well. It is anticipated that worldwide video game sales would fall in 2022. Similarly, 2021 was a banner year for media streaming services, but now, with the economy in shambles, businesses like Netflix are looking for new ways to make money.
On Thursday, the Wall Street Journal reported that Andy Jassy, CEO of Amazon, has launched a search for ways to reduce expenses. This ostensibly entails putting an end to or cancelling ineffective projects and reallocating resources. Alexa-enabled smart speakers are part of Amazon’s device division, which is currently under review.
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