It looks like everyone’s favorite shopping addiction may be losing some its luster.
Or at least that’s the gist of recent earnings reports that signal a significant dip in revenue. According to Bloomberg, Amazon is the world’s first public company to lose a trillion dollars in market value as a result of spiking inflation, stricter monetary policies and a damaging stock selloff earlier this year.
Shares fell 4.3% on November 9, sending the market cap to $879 billion. late July it sat at $1.88 trillion. This also comes on the heels of a widespread hiring freeze reportedly implemented by the company in November.
According to Fortune, Amazon Web Services have begun to ask managers to “weed out underperforming workers” on teams fast-growing teams and will maintain a hiring freeze until Q3 2023.
Amazon also reportedly projected the most sluggish growth for a holiday quarter in the retailer’s history as shoppers are cutting back as a result of rising costs. This decreased its market value under $1 trillion for the first time in two years.
Amazon’s billionaire founder Jeff Bezos has experienced a shrinking of his fortune to the tune of about $20B per Bloomberg reports.
The retailer isn’t the only company to show a significant decrease in revenue since the start of the year. Nearly tying Amazon in its trillion-dollar loss is Microsoft, with a market valuation loss of around $900 billion. The tech giant s not alone. As Gizmodo pointed out, the top five most valuable U.S. tech companies reportedly shed $4 trillion in value this year.