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Amazon stock value slumped 45%, loses $670 bln market cap

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The Big Five tech giants saw their stock prices slump last year, dragging the whole market down, after years of impressive growth that turned them into trillion-dollar companies.

However, the eCommerce giant Amazon was among the hardest hit, according to data compiled by TradingPlatforms.com.

Amazon’s stock value slumped 45% year-over-year, with $670 bln being wiped off its market capitalisation, the survey found.

Surging costs, consumer spending slowdown

Inflation, high-interest rates, and macroeconomic uncertainties are all weighing on the growth prospects of tech companies, whose valuations are often based on projected future earnings, rather than on current performance.

Amazon is the perfect example of that.

The eCommerce giant is struggling to keep up with its pandemic growth while trying to manage surging costs and consumer spending slowdown. Disappointing financial results throughout 2022 have caused the company’s stock price to slump, wiping more than half a trillion dollars off its market cap in just one year.

According to YCharts data, Amazon’s stock value amounted to $1.65 trln in January last year. After falling to $1.41 trln in March, this figure recovered to $1.61 trln in April before plunging again to just over $1 trln in July. However, this was just the start of a downturn.

Statistics show Amazon’s stock value rose to $1.45 trln in August and then slumped to $878 bln three months later. The tech giant ended the year with around $902 bln in market cap.

Although the combined value of Amazon shares rose to $981 bln last week, this still represents a massive 45% drop year-over-year.

Second-largest drop among Big Five

Although some of the biggest names in the tech industry, like Apple and Microsoft, are still doing well, investors have turned their back on tech stocks, no longer sure they can keep growing at the pace shareholders expect.

Statistics show Apple, Microsoft and Google-parent Alphabet saw their stock values drop 14%, 24% and 28% year-over-year, respectively, far less than the loss of Amazon or Facebook-parent Meta.

Amazon’s 45% YoY market cap drop is the second-largest among the Big Five, with only Meta Platforms seeing the worse stock price slump. The YCharts data show Meta lost nearly 60% of its stock value, falling from $872 bln to $355 bln year-over-year.