Amazon Faces A Crisis As Its Stocks Keep Losing Value Due To Inflation/Recession Fears

The running year has been full of shockers for the entire tech industry. The year has proven to be completely opposite to how things were for the tech sector in the previous year.

The companies that performed the best in the year 2021 have found themselves facing the worst situation.

The brutality of the running year has kept growing despite the countries trying to fix the economic situation.

Amazon has taken a lot of Damage

Among the tech companies that have suffered the most in the running year is the largest e-commerce platform, Amazon.

The largest e-commerce company in the entire world has faced a terrible situation in the ongoing year. From the beginning of the year until now, the company has lost more than half of its total valuation.

All of this is because of the market situation that has continued getting worse because of the economic downfall. The recession fears have also started to add their negative impact on the stock markets.

Investors are now eager to save their funds rather than invest them in stocks. The most valuable asset is now gold where people are spending billions of dollars to save their money.

It is the best and the most reliable hedge fund that people can save money into. A year back, people had high hopes for Bitcoin but all such claims were laid to waste with the downfall of the crypto industry as well.

Amazon’s Share Price Performance

The statistics show that the year 2022 has been the worst across the board. However, nothing could match the brutality of the year running year when it came to the e-commerce (e-retailer) industry.

As per the market analysts, it is the worst crash that has been recorded for any industry since the dot-com crash.

The data collected for Amazon shows that the share prices for the e-commerce giant have dipped 51% since the beginning of 2022.

This is the worst fall Amazon share prices have experienced since 2000. Amazon is among the oldest e-commerce publicly-listed companies that went on the stock market back in 1997.

Back in 2000, the share prices for Amazon experienced their worst fall when the shares plunged by 80%. However, at that time, the valuation of the company was just over $1 billion.

At the time of writing, the overall valuation of Amazon is $852.57 billion. At the beginning of the year 2022, the overall valuation of Amazon was over $1.7 trillion.

Back in July 2021, the overall valuation of Amazon had surged by over $1.9 trillion. Compared to the all-time high, Amazon’s valuation has dipped by 55.11%.

It is a great dip that Amazon’s shares have recorded ever since the company crossed the $1 trillion mark.

Downtrend of Other Tech Giants

Other tech giants that were once over the $1 trillion mark have also suffered major declines in their valuations. After Amazon, it is Tesla that recorded a 68% plunge in its share prices from year to date.

Then comes Meta which has also suffered a major plunge in share prices. The report shows that Meta’s share prices have dipped 66% from the beginning of the year until now.

These companies had the worst year so far and things are not looking for them in the upcoming year as well.

Amazon’s Misfortune

The journey for Amazon has been quite unfortunate when it comes to dealing with the macro and economic environments.

As the vast majority of Amazon is based on e-commerce solutions, it ended up facing a major dip in its revenue due to the rising inflation rates.

The consumers were forced to restrict themselves from overspending and they had very less money when it came to disposable income.

Therefore, the company saw a huge decline in its e-commerce sales and demand. The company had built quite an empire just a year back but it seems to have lost all of its weight due to the inflation rise.

There are already predictions of an economic recession that may make the situation worse for Amazon’s shares. It may continue losing its valuation, which means its share prices will decline tremendously.

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