On Wednesday, Amazon’s market worth reached $879 billion, down from a high of $1.88 trillion in July 2021. According to Bloomberg, it’s the first publicly traded business in history to suffer a market value decline of more than $1 trillion.
Photo Credit: Bloomberg
After the initial COVID-19 lockdowns, many people returned to work and daily life, and this has had an effect on Amazon as well. Microsoft’s market cap has fluctuated between a high of around $2.5 trillion and a current low of about $1.78 trillion. Prior to rebranding as Meta in August 2021, Facebook’s market cap was about $1 trillion. It is currently around $285 billion. There have been occasions this year when the Dow Jones Industrial Average has been lower than it is now, which is a decline of more than 8% since the beginning of 2022.
As a result, businesses across all industries are feeling the pinch. In 2022, the video game industry is predicted to experience a general sales decline. The streaming media industry had similar growth in 2021, but major players like Netflix are now seeking new sources of income in the face of economic uncertainty.
According to Thursday’s Wall Street Journal, Amazon CEO Andy Jassy has initiated a review aimed at reducing the company’s expenses. Apparently, this entails reassigning workers and halting or canceling unprofitable initiatives. The article also mentioned that Amazon is evaluating its device business, which includes Alexa-enabled smart speakers.
