The Strategist

Amazon's capitalization falls below $1T for the first time since 2020

11/02/2022 - 13:39

One of the biggest online retailers in the world, Amazon, saw its market valuation slip below $1 trillion for the first time since 2020 as a result of a steep decline in its stock price following the release of its financial statements, according to trading statistics.

Elliott Brown
Elliott Brown
At the end of Tuesday's trading, the price of the company's shares dropped 5.52 percent to $96.79. Thus, the company's capitalization, including the number of shares outstanding, was $987.4 billion. The year before last, Amazon had a value of less than $1 trillion.

Such factors influenced the company's report for the most recent quarter. Amazon's net income specifically decreased by 9% to $2.872 billion. Additionally, the company mentions the potential negative impact of currency rate discrepancies even though it anticipates revenue growth for the current quarter and in yearly terms.

Currently, Apple ($2.4 trillion), Saudi Aramco ($2 trillion), Alphabet ($1.2 trillion), and Microsoft ($1.7 trillion) are among the companies with market capitalizations above $1 trillion.