Amazon became this week the first public company to lose over $1 trillion in value as its market cap dipped to $879 billion on Wednesday, down from its peak of $1.88 trillion in July 2021, according to Bloomberg.
Although Amazon's market capitalization briefly dipped below $1 trillion on Thursday, it had risen back above $1.02 trillion by the end of trading on Friday. However, the record it set on Wednesday will remain intact.
The economy is having an impact on companies like Amazon, Microsoft, and Facebook. While their values have fluctuated, they are all still down from their peaks earlier this year. The Dow Jones Industrial Average is also down 7% since the beginning of the year.
Sales for video games are also expected to fall overall in 2022. Similarly, media streamers did well in 2021, but companies like Netflix are looking for more revenue in light of financial instability.
Amazon's CEO, Andy Jassy, recently announced a company-wide cost-cutting review, according to The Wall Street Journal.
This includes suspending or eliminating unprofitable projects and reassigning employees. In addition, they are taking a closer look at their device business, which includes Alexa-enabled smart speakers.
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