Amazon sell-off pushes market cap below $1 trillion for first time since April 2020

Andy Jassy, chief executive officer of Amazon.Com Inc., speaks during the GeekWire Summit in Seattle, Washington, U.S., on Tuesday, Oct. 5, 2021.

The trillion-dollar club is no longer occupied by Amazon.

The e-retailer's shares fell for a fifth day in a row and closed at their lowest level in more than a year. Almost all of the stock's surge has been wiped out by the sell-off.

Last week's disappointing fourth-quarter forecast was punished by investors. The company said revenue would grow 2% to 8% over the year-ago period. Amazon Web Services' sales were weaker than expected.

Since April 2020, Amazon's market cap has been less than $1 trillion. It is on pace for its worst year since 2008, when it dropped 45%. During the dot-com crash of 2000 the company lost 80% of its value.

Amazon has struggled this year because of a slumping economy, soaring inflation and rising interest rates. Now that consumers have returned to stores, Amazon has had to scale back, forcing them to do so.

Amazon is the second worst performer in the Big Tech group this year, behind Facebook. According to Meta, revenue in the fourth quarter would likely decline for a third straight period.

Annie Palmer was a contributor to the report.

AMAZON didn't deliver on earnings