Amazon.com Inc.’s stock plummeted on Friday, losing one of the worst market values in Wall Street history after the company’s forecast was deemed dismal.
The stock dropped 14% in one day, the most in a single day since July 2006, and closed at its lowest level since June 2020. Amazon’s market value decreased by $206.2 billion as a result of the deal.
Amazon’s market value decline second only to Meta Platforms
The drop was the latest setback for the top corporations in the US stock market, which have been under pressure since April due to a tumultuous earnings season and concerns about Federal Reserve policies.
The Nasdaq 100, the most technologically sophisticated stock index, fell 4.5 percent on Friday, bringing its April loss to 13%, the worst monthly drop since October 2008.
People are waking up to the fact that the easy money days are over. “Rising rates, COVID, war, and now you see the vulnerability of the tech titans that have governed everything for so long,” said US Global Investors Inc.’s top trader. Michael Matusek is a writer.
Amazon’s stock dropped 24 percent in a month, the largest monthly percentage decrease since November 2008. Alphabet’s stock plunged 18 percent after the company announced dismal first-quarter sales, the weakest performance since November 2008.
Apple’s stock has dropped 9.7% this month, the most since September 2020. Despite a large surge in last week’s earnings, Microsoft shares sank 10% in April, the steepest decrease since January 2015. Meta Platforms shares fell 9.8% in April.
Rising cost pressures and an unclear future for the top tech firms have unnerved investors, said Charlie Ripley, senior investment starter at Allianz Investment Management. He said the Fed is projected to hike rates by 50 basis points next week, “coupled with a hawkish message.”