- Tram Ho
Two years ago, when the Covid-19 pandemic broke out, the market sell-off sent Amazon’s market capitalization below the $1 trillion mark. However, with the pandemic a thing of the past, the market sell-off continues to hit tech companies. Falling 5.5% in trading on November 1, Amazon shares are now only $ 96.79, equivalent to a market capitalization of $ 987.4 billion.
$96.79 is also a number that people have not seen in Amazon stock since April 2020, when the pandemic began to break out on a global scale. In the first 10 months of this year alone, Amazon stock has also dropped 42% in value. At its peak on November 18, 2021, Amazon’s market capitalization reached nearly $1.9 billion.
Amazon has just experienced 5 consecutive declining sessions and caused 20% of the market price to be blown during this period. Meanwhile, Nasdaq, an index of mainly technology stocks, fell 1% in yesterday’s trading session.
The quarterly earnings report was one of the reasons Amazon stock sold off. Last week, the Seattle-based business forecast it would have its slowest holiday quarter in history. Specifically, growth is forecast to be only 2 to 8% in the season that has always been Amazon’s peak.
However, not only Amazon but many other technology stocks sold off throughout the 2022s. Concerned about slowing growth rate while interest rates rose sharply, investors simultaneously sold off technology stocks. . Economic uncertainty weighs on overvalued stocks.
Most of the growth during the pandemic, a time of cheap money, has been blown away from the capitalization of Amazon and tech stocks. However, Amazon is not the biggest victim. Shares of another tech giant, Facebook, have dropped 70% of their value from their peak.
That’s all the more sad when US stocks just had a brilliant October, with all major indexes gaining, ending 2 consecutive months of selling. In the Dow Jones alone, October’s gain amounted to nearly 14%, something that hasn’t been achieved since January 1976.
Even so, the Dow Jones is still down nearly 10% year-to-date, the S&P 500 is down 20% (though it’s up 8% in October) and the Nasdaq is down 30% (even after recovering 4%) in recent months. of the year 2022.
In the trading session on November 1, the US stock market fluctuated insignificantly. The Dow Jones fell 79.75 points, or 0.24%. The S&P 500 also fell 15.88 points, or 0.41%, while the Nasdaq fell 0.89%.
The movements of the US stock market seem to reflect the sentiment of investors, who are waiting for the Fed’s policy meeting, scheduled to take place on November 2-3. Most analysts agree that the Fed will continue to raise interest rates by 0.75% this time. However, they want to know the view of the Fed at the next meeting in December.
Source : Genk