E-commerce firm loses $200B in market value, falling to $1.26T
US-based multinational e-commerce company Amazon’s stock price plummeted 14% on Friday, recording its largest daily loss since 2006 amid weak financial results.
The stock price of Amazon fell 14.05% to close at $2,485.63 per share on the Nasdaq. This marked the sharpest daily decline in Amazon shares since July 2006, according to official figures.
The decline in stock price led to Amazon seeing approximately $200 billion loss in market value, which fell to $1.26 trillion on Friday, from $1.46 trillion on Thursday.
The steep decline came as Amazon posted its financial results after the closure of the market on Thursday, which showed the slowest quarterly sales growth since 2001 when the dot-com bubble had shaken the tech industry.
Amazon’s total net sales rose 7% in the January-March period, from the same period of last year, but this was the slowest annual increase for any quarter in over two decades, according to the financial results.
The company said it also had a loss of $7.6 billion from its investment in Rivian Automotive,an American electric vehicle automaker that has a partnership with Amazon in building electric delivery vans.