Amazon became the first company to lose $1 trillion in market value during the 2022 stock-market decline. The fall reflected a major drop in its share price from the pandemic-era peak, combined with the enormous valuation Amazon had previously accumulated.
Market capitalization changes when a company’s share price changes, even if the number of shares remains broadly similar. Amazon’s value had benefited from surging online shopping and cloud-computing demand during the COVID-19 pandemic. Later, inflation, higher interest rates, weaker technology valuations, and slowing growth put pressure on the shares.
In November 2022, reports calculated that Amazon’s market capitalization had declined by about $1 trillion from its record level. This was a market-value loss, not a direct cash payment or a $1 trillion accounting expense.
Amazon was founded as an online bookseller, but Amazon Web Services, advertising, logistics, and retail became major parts of its business. Its valuation can therefore move with several different technology and consumer trends.