Amazon became the first company in the world to lose US$1 trillion in market value.
Amazon reached this unwanted milestone in November 2022, when its market capitalization fell by roughly US$1 trillion from its pandemic-era peak. The decline followed a large fall in the company’s share price as investors reacted to higher interest rates, slowing economic growth, and weaker expectations for technology stocks.
Amazon’s valuation had risen dramatically during the COVID-19 pandemic, when online shopping and cloud-computing demand accelerated. Its market value later fell as those exceptional conditions eased and the wider technology sector faced a sharp repricing.
The phrase means a reduction in equity market capitalization, not that Amazon paid out or physically lost US$1 trillion in cash. Market capitalization can change quickly because it is based on the current share price multiplied by shares outstanding. Amazon remains a major company through its online retail business, Amazon Web Services, advertising, and subscription services.