Nailed It: Amazon Becomes the First Company Ever to Lose $1 Trillion in Stock Value

One of the first companies to join the prestigious $1 trillion dollar valuation club is Amazon. The Everything Store was the first publicly traded company to lose money.

The results of a worsening economy, dour earnings reports, and massive stock selloffs are the mind incomprehensible figures. On Thursday, Amazon reported a measly $878 billion value. Microsoft, which briefly surpassed Apple as the world's most valuable company last year, had a market valuation loss of $900 billion. The decline of the two companies captures the effect of a bad year in tech.

Amazon and Microsoft aren't the only ones that have declined. According to reports, the top five U.S. tech companies lost $4 trillion in value this year. That is more than the combined GDP of Turkey, Argentina, and Switzerland.

Amazon disappointed investors last month with disappointing third quarter revenues. The company expects fourth quarter growth to be just 2%. Even though it is fine for a normal company, there is nothing normal about Amazon. As consumers begin to trickle back into retail stores, Amazon has had to contend with declining e- commerce shopping.

Andy Jassy said there was a lot happening in the macroeconomic environment. We will balance our investments to be more streamlined.

Amazon has so far avoided the eye popping layoffs that have impacted so many of its peers in the tech industry. There are reasons to be concerned. The hiring freeze was expanded to cover all corporate employees. Amazon Senior Vice President of People Experience and Technology Beth Galetti wrote in a memo that an uncertain economic outlook and a rise in hiring in recent years are the main drivers behind the slowdown.

The record valuation losses show just as much about the modern global economy as they do about one company. Apple was the first company to reach $1 trillion in valuation. Around a half a dozen other companies, including Amazon, Microsoft, Meta, and Saudi Aramco, all surpassed the once unimaginable figure, thanks in part to Apple. The more meaningful story will be about those who can lose the same amount and still retain their wealth.