Amazon's market value slips below $1 trillion after bleak earnings report

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Amazon.com Inc. stock fell 21% in after\u002Dhours trading Thursday. Read more.

Electric-car maker Tesla Inc., once worth more than US$1.2 trillion, has seen its market value tumble to about US$710 billion. Facebook parent Meta Platforms Inc. market value plunged by more than 75 per cent from its US$1.08 trillion peak last year, forcing it out from the ranks of the world’s 20 largest companies. Even Apple Inc.

The COVID-19 pandemic had helped supercharge Amazon’s businesses and propelled its value to a US$1.88 trillion peak about a year ago. With growth now slowing and an uncertain macroeconomic backdrop, its shares had fallen about 33 per cent this year through Thursday’s close. Jeff Bezos, once the richest person in the world, was ranked No. 3 as of Thursday.

“Amazon could trade range-bound until there is evidence of the macro storm clearing and a sustainable improvement in profitability,” said Brent Thill, an analyst at Jefferies who has a buy rating on the stock and a price target of US$135.

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