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Saundra Latham 
Saundra Latham
Commerce Editor @ Yahoo | Writer, Editor, Content Curator
Published Nov 9, 2022
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After recently losing its membership in the exclusive club of companies with a market cap of $1 trillion or more, Amazon has become the world's first publicly traded company to shed $1 trillion in market value, Bloomberg reports. In July 2021, Amazon's value peaked at just under $1.9 trillion; today, that number is under $900 billion. The e-commerce giant has already acknowledged that it's unlikely to bounce back on the strength of holiday sales, saying it expects fourth-quarter revenue to fall far short of Wall Street's forecasts.
- Apple, Alphabet, Amazon, Tesla and LinkedIn parent Microsoft have surrendered a total of over $3.4 trillion in market value this year.
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René Azeez
René Azeez is an Influencer
Senior Director of Strategy | Leading Teams that Build and Translate Strategy into Action | HEC Paris Executive MBA (with Distinction)
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Amazon Becomes World’s First Public Company to Lose$1 Trillion in Market Value bloomberg.comAmazon, formerly valued at $1.9 trillion, is now valued at under $900 billion, making it the first company to have shed a trillion dollars in value. A trillion dollars! One of the key lessons seems to be that market capitalization is much less of a proxy for the fundamental strength of a company than it used to be many moons ago when the investing landscape was more nascent and risk averse. It serves us all well to look at metrics in context and to reserve a degree of scepticism for sensational metrics that defy the fundamentals. In these cases, what goes up must come down.#amazon #litrendingtopics
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David Gossett commented on this
Nicholas Short
Senior Associate, Internal Investment Consultant at AMG Wealth
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The Shrinking Trillion Dollar Market Cap Club - www.visualcapitalist.com https://www.visualcapitalist.comYou might have missed this, but Amazon went below a trillion dollar market cap this year. Check out who else fell out of the Trillion Dollar Market Cap Club.
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Like CommentDavid Gossett
Product Design and Development | Emerging Tech | A.I., NLP and Machine Learning | Researcher | Startups
IMO, this is a "pendulum" reaction. If I pull a ball on a string radically in one direction (global pandemic), it's not only going to swing wide in the other direction (supply chain disruptions creating inflation), but it's going to take longer to settle down (into a single deviation space). The world usually operates within + or - one deviation. It takes a fat tail event (and at a global scale), like a pandemic or a huge disruption in oil and gas flows, to increase the swing of that bob. Just as the pandemic was settling down, here comes the Ukraine War -- forcing the bob to swing wide, not because of the regional conflict, but because of energy sanctions.Amazon, Tesla, and others are still sound, well-performing companies. They are just getting caught up in the current "large" swings of recent existential events. The whole industry (world!) is getting caught up in that swing right now.What I don't understand is why humans think any of this is the "new normal." Peleton, Zoom, house sales, car sales, etc. all benefited from a huge pandemic swing. Of course, that was not to last.
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Christopher T. Haas, MBA, CTP commented on this
Nicholas Short
Senior Associate, Internal Investment Consultant at AMG Wealth
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The Shrinking Trillion Dollar Market Cap Club - www.visualcapitalist.com https://www.visualcapitalist.comYou might have missed this, but Amazon went below a trillion dollar market cap this year. Check out who else fell out of the Trillion Dollar Market Cap Club.
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Like CommentChristopher T. Haas, MBA, CTP
National Fleet Manager @ Interstate Batteries | MBA, Fleet Management
I believe what this is showing us is that many companies are and have been overvalued simply because of social appeal not because of product value. Eventually, the product has to stand on its own. They all still have value and have transformed society, but that value is adjusting to true market value.
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Brett Molina
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'This is a dicey moment': Amazon, Apple, other tech giants lose billions in value as market wobbles usatoday.comFrom my colleague Bailey Schulz: Valuations for Apple, Microsoft, Amazon, Tesla and Google parent Alphabet have lost a combined $3.4 trillion this year, according to market analysis firm Finbold. That's a 34% drop in market cap since Jan. 1. #microsoft #tesla #amazon #apple #alphabet #techstocks
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James Pollard
Host of "Financial Advisor Marketing" Podcast | Founder of TheAdvisorCoach.com
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"If you aren't willing to own a stock for ten years, don't even think about owning it for ten minutes." - Warren BuffettI am primarily an index fund investor. Still, I have a small portfolio where I pick individual stocks. It exists merely to scratch the individual stock itch. 😂 Last week, I started gobbling up four stocks...1. Amazon, which is down 49% YTD.I don’t think Amazon is going away. Their cloud computing sector is a cash-generating machine, and it will probably grow in the next few years. Amazon is something like 37% of the U.S. e-commerce market, and they have an insane amount of data they can use to increase sales. They’re constantly running split tests and, as a marketer, I know how easily that can lead to increased revenue.2. Microsoft, which is down 32% YTD.Microsoft also has some cloud computing solutions, among multiple other revenue streams. Its customer base is also extremely sticky.3. Alphabet, which is down 39% YTD.Google is being affected by a slowdown in ad spending right now, but I’ve been through several boom-and-bust ad cycles as a marketer and this one is laughable. In my opinion, it’s completely overblown. There are so many tracking services on the market now that only the dumbest companies are cutting their ad spending. The only reason to stop spending money on a marketing campaign is if it isn’t profitable, and marketing campaigns should be MORE profitable now than they were last year because auction-based bidding models have fewer competitors. But that's a story for another day. 4. Meta, which is down a face-melting 70% YTD.Let me be clear: Meta is NOT the metaverse any more than Amazon is e-commerce. Or Gmail is email. Or Walmart is retail.Meta may end up being PART of the metaverse, but it is not THE metaverse. I am incredibly bullish on the metaverse (because I personally use it for education, work, and fitness) and think it will revolutionize the world in the next decade.I think people need to understand that Meta is already making metaverse-related products, though. Lol. Do you realize that the Quest 2 sold around 15 million units? Do you understand that there is a marketplace in Quest where people can buy games and apps? It’s similar to Apple’s app store. Now, consider stats like this…75% of children aged 9 to 12 used Roblox (an online gaming platform and entry into the metaverse) in Q2 of 2020. If you think those kids aren’t going to embrace similar tech in the next ten years, I think you’re out of your mind.The gaming industry is bigger than Hollywood and the music industry combined.I’m willing to take that risk when the P/E ratio is 8 and the price is back to 2015 levels.I am willing to hold all of these companies for ten years. We will see how it works out for me. Lol.#notfinancialadvice
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Nicholas Short
Senior Associate, Internal Investment Consultant at AMG Wealth
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The Shrinking Trillion Dollar Market Cap Club - www.visualcapitalist.com https://www.visualcapitalist.comYou might have missed this, but Amazon went below a trillion dollar market cap this year. Check out who else fell out of the Trillion Dollar Market Cap Club.
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Arpit Apoorva
Startup & Business Consulting | Ex-Deloitte | Insights on Strategy, Leadership & Emerging Tech
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In the past few days, the 5 major technology companies have collectively lost $700 billion in market value. While Apple's value has surpassed that of Amazon, Alphabet, Meta, and Netflix put together. What's happening with big tech? Let's take a look.- Alphabet's net profit is down 27%- Amazon released a poor Q4 prediction- Meta announced a 52% decrease in Q3 profit The big 5, often known as the GAFAM (Google, Amazon, Facebook Meta, Apple, and Microsoft), prospered during the pandemic. They grew earnings by more than 55% in 2021, reaching $1.4 trillion in revenue. However, the macro climate of today has completely altered the situation, which includes factors like: - record inflation- rising interest rates- an energy crisis- a war in Europe- recession fears Companies all across the world are reducing their expenditures for the first time, putting pressure on the $300 billion digital advertising oligopoly of Google (search ads) and Meta (social media activities). Considering that the majority of advertising has gone online, a seemingly unbreakable business model appears to be losing momentum. A larger portion of the shrinking pie is also being quickly consumed by new companies like TikTok.Apple appears to be the exception that is surviving the storm. There are two major causes:- It is an ecosystem company with complete end-to-end control over its whole product line and unique ownership of both the hardware and software side. - With 1.8 billion devices in use, Apple is attempting to diversify its revenue and growth through a push into digital advertising.In spite of their size and resources, Big Techs are now experiencing the limits of their business models for the first time in recent history. Nobody wants to follow in Nokia's or Yahoo's footsteps; both companies appeared unstoppable at one point, but whether we like it or not, the status quo will inevitably change. What are your thoughts? Join me at 'Business Strategy & Leadership' for regular insights on what's new, what’s possible, and what’s next: https://lnkd.in/daZyBNGH Upcoming event ➝ Future of Business: https://lnkd.in/dUEGr6rZ
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Michael A. Johnson
PCBB | Correspondent Banker with Specialized Solutions | Balance Sheet Mgmt. | Liquidity Strategy | De Novo Services | Profitability Modeling | Hedging | Loan Participations | CECL | C&I Loan Program | Stress Tests |
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'This is a dicey moment': Amazon, Apple, other tech giants lose billions in value as market wobbles — USA TODAY stocks.apple.comDot.com bust 2.0? With each passing day there seems to be another press release from tech giants announcing staff reduction plans. The Fed’s #FOMC ultra-aggressive rate hikes are slamming tech companies, small businesses, and emerging market industries alike…and with it, those same companies are losing trillions in market cap value. The #dowjones is outperforming the #NASDAQ…. That tells me the smart money (institutional funds) has moved into the strongest industrial companies with large moats! A number of big tech companies have also been announcing recent layoffs, here's a few: #meta, #twtr, #lyft, #stripe, #coinbase, #shopify, #nflx, #msft, #snap, #robinhood, #chime, #tsla
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