Amazon's stock continued to fall during Friday's trading, recording its lowest level since April 2020, as it fell by 20% after the company said that the most important holiday shopping season will be smaller than expected, resulting in the company's market capitalization falling below a trillion dollars, as Amazon's market capitalization fell to about $ 940.8 billion after the company's business results fell below analysts' estimates, and it cut its revenue forecast for the fourth quarter of this year.
Amazon is one of the most labor-oriented technology companies but is somewhat far from Walmart, despite taking second place with a workforce of 1.6 million people, but one sector still outperforms business activities.
Amazon is the latest tech giant to disappoint Wall Street this week after explosive growth during the pandemic, as Amazon struggled to contain costs as inflation and rising interest rates caused their losses and the company slowed the spread of new facilities, rented some warehouse space and imposed a hiring freeze on parts of its business, and during the three months ended Amazon reported sales of $ 127.1 billion slightly less than analysts expected and the company made a profit of $ 2.9 billion, but Amazon's holiday directives This is what worried investors.
In April of this year, Wall Street also closed sharply lower due to the decline in Amazon's stock after the negative quarterly report, which was the first quarterly loss since 2015, and Amazon reported a 3% year-on-year decline in the online commerce sector, which includes sales of products and digital media products.
In July, Amazon reported its second consecutive quarterly loss, much of the loss was due to its investment in Rivian Automotive, an electric car maker, but rising costs and slowing sales also led to a drop in sales at its online store, with its shares down more than 65% this year.
The biggest rise in monthly inflation since 2005 has already raised investor concerns about interest rate hikes, with Amazon plunging into its biggest one-day drop since 2006 to near two-year lows and the then-e-commerce giant reporting quarterly losses of $3.8 billion and disappointing expectations.
The American company Amazon expected that the revenues of the fourth quarter of this year will range between $ 140 billion and $ 148 billion, which is much lower than analysts' estimates of $ 155.15 billion, and this came after the company's revenues reached $ 127.10 billion in the third quarter, an increase of 15% on an annual basis, but slightly lower than expectations of $ 127.46 billion, and in terms of trading, Amazon's stock also fell by 9.78% to $ 100.08, after falling to its lowest levels in more than $ From two years at $97.66 earlier in trades.
Amazon CEO said it is clear that there is a lot going on in the macroeconomic environment and we will balance our investments to be more streamlined without compromising on our key long-term strategic bets.
Amazon's results come on the heels of disappointing numbers from their peers in big tech companies as Facebook's parent Meta share price fell to multi-year lows this week after reporting lower revenues and warning of rising costs and losses in the metaverse and Alphabet and Microsoft's share prices fell after sales growth was expected to slow.
About Amazon
Amazon was founded on July 5, 1994 by Jeff Bezos and is headquartered in Seattle, Washington, United States. Amazon started its activity as an e-book store and then quickly diversified its production line to add DVDs, music CDs, computer programs, video games, electronics, food, small toys, clothing, jewelry, accessories, sports supplies, books, musical instruments and more as well, and Amazon is now the largest online retailer in the world in terms of total sales and market capitalization.