Amazon Stock Loses 50 Of Its Value

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Amazon Stock Loses 50 Of Its Value

Amazon Stock Loses 50% Of Its Value In 2022

It is official now, with Amazon stock losing 50% of its value in just a year in 2022 alone. In addition, Amazon has also ended up losing all of its gains from the pandemic era as well. As a result, the current trading price of Amazon is the same as before COVID-19 started.

A drop of this magnitude doesn't just represent the poor performance of Amazon as a company. In fact, it also tells us about the current state of the US economy and even the world in general.

During the Monday trading session, Amazon's stock registered a loss of 3.4%, which took its price to around $84.92. According to experts, this is the lowest close for Amazon since March 2020.

Broad Sell-Off In Tech Sector

One of the major reasons behind the sell-off in the tech sector is soaring inflation. And it seems that even Amazon has fallen prey to the rising inflation in the US and other countries. In addition, we also have rising interest rates and a poor economic state in the USA.

In fact, the NASDAQ Composite is all set to lose to another index called S&P 500. If this happens, it would be the first time in almost 2 decades! According to a rough estimate, around $2 trillion was removed from the tech stocks of the USA!

There are many people who are comparing the Amazon stock performance of 202 with the dot-com crash that happened in 2022. At that time, Amazon lost 80% of its value, while it lost around 49% in 2022. In addition, Meta has also lost 66% of its value, while the car manufacturer Tesla is down by 57%.

So for Amazon investors, there is solace in knowing that Amazon is not the only company that has lost most of its value in 2022. But this also highlights how fragile our stock markets have become... It only takes one card, and the whole house of cards (stock market) comes falling down. In this case, that one card was the soaring inflation which changed everything for the tech sector.

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