Amazon Leaves The Club Of The World’s Biggest Companies By

© Reuters. – Shares of Amazon (NASDAQ:) plunged 5.9% on Tuesday, falling for the fifth consecutive session and closing at their lowest level since April 2020. The sell-off erased almost all of the upside action during the pandemic.

Investors continued to punish the company for last week’s disappointing fourth quarter guidance. Amazon said revenue in the holiday quarter would increase 2% to 8% from the year-ago period, well below analysts’ estimates. The Amazon Web Services division also reported lower-than-expected sales.

It’s the first time Amazon’s market capitalization has fallen below $1 trillion since April 2020. The stock plunged 43% in 2022 and is on course for its worst year since 2008, when it had dropped by 45%. The only other year that was worse was during the dot-com crash of 2000, when the company lost 80% of its value.

Like the rest of the tech sector, Amazon has struggled this year due to the collapsing economy, runaway inflation and rising interest rates. Additionally, Amazon has been forced to scale back after experiencing dramatic expansion during the pandemic now that consumers have returned to stores.

Amazon was the second-worst performer among big tech companies this year, behind Meta (NASDAQ:) which fell 72%.

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