On June 21, Jeff Bezos’s company, Amazon, had a market value of $1.882 trillion. At the same time, their market value fell to $878 billion on Thursday. Microsoft, which overtook Apple last year to become the world’s most valuable company, also suffered a major setback. Microsoft’s market value fell by $900 billion. The top five most valuable technology (IT) companies in the US have lost a whopping $4 trillion this year, more than the combined GDP of Turkey, Argentina and Switzerland.
Weak quarterly results
As reported by gizmodo.com, Amazon disappointed investors after announcing its third quarter results just last month. Interestingly, the company only forecast 2.8% year-on-year growth in the fourth quarter, which is quite low for them. Amazon, which has been constantly reaching new heights, has suffered a huge loss due to the decline in e-commerce purchases.
Shares fell 50%
Amazon, the world’s largest online retailer, is facing a major slowdown in the e-commerce sector this year. So it may take some more time for the company to reach its pre-coronavirus status. Its shares have fallen nearly 50 percent due to sluggish sales, rising costs and rising interest rates. Also, Amazon co-founder Jeff Bezos has seen the company grow from $83 billion to $109 billion since its early days, according to Bloomberg data.
Ban on new recruitment
Meanwhile, while announcing the third quarter figures, Amazon CEO Andy Jesse said that the economic environment is changing a lot. Andy said it will create an investment strategy balanced with its key long-term goals. However, the good thing is that Amazon has not laid off employees yet, but the company has suspended new hiring. Note that many tech companies, including Meta, have cut staff due to declining revenue.
Coconuts to 11 thousand employees of Meta
The parent company of social media platform Facebook, Meta Platforms Inc. While laid off more than 11,000 employees on Wednesday, the company has already halted new hiring. Meta CEO Mark Zuckerberg apologized for the layoffs and said they had no other choice.