Now it’s a bit of a trial period for Jeff Bezos, who is on the list of the world’s richest people. The reason is that the market value of Amazon, the company that made him rich, has recently lost a trillion dollars. Amazon has also become the first company to lose a trillion dollars in market value.
Amazon is the king of the e-commerce world. The question that arises for investors is how the market value of such a company suffered a loss. The main reason for this is inflation which is a threat all over the world. Inflation increases prices and directly affects people’s lives. Besides, due to the fiscal policy actions of central banks, the consumption of the people decreases drastically, and the income of the companies is affected.
Investors have sold Amazon shares heavily over the past year. Amazon’s share price has been steadily declining over the past year as the stock has been on a heavy sell-off.
Amazon’s stock price has seen a 50% drop. As of July 2021, Amazon’s market value was $1.88 trillion. It is currently $879 billion, a $1 trillion drop.
Not only Amazon but also Microsoft has suffered a heavy decline. US tech stocks have been falling for the past year. The market value of leading technology companies has collectively lost $4 trillion over the past year.
What else is this inflation waiting to do?