Amazon loses over $200 billion in market value

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Hangover mood: A trader on the New York Stock Exchange on Friday

Photo: Michael Nagle/Bloomberg via Getty Images

Unexpectedly weak business figures from the online shipping giant Amazon, concerns about a slowing economy and further interest rate hikes by the US Federal Reserve are causing significant price losses on the US stock exchanges.

On New York's Wall Street, the S&P index of 500 of the largest listed companies fell by a good 3.6 percent on Friday - and was trading at 4,131.93 points at the end of trading.

This was the lowest closing level in almost a year.

Overall, the leading index lost 8.8 percent in April.

The last time there were even bigger monthly losses was in March 2020: when the corona pandemic briefly triggered a sell-off on stock exchanges around the world.

The technology index Nasdaq even lost more than four percent on Friday and fell to a 17-month low.

Inflation and supply chain bottlenecks are troubling Amazon

The Amazon share fell particularly badly: with a minus of over 14 percent.

The market capitalization, i.e. the market value of all shares, fell by more than 200 billion US dollars to around 1,260 billion dollars within one trading day.

The group had previously announced a loss of around $3.8 billion for the first quarter of 2022.

The minus would not have come about without a write-down on the stake in the electric car manufacturer Rivian of $ 7.6 billion.

But online trading is also developing weaker than expected.

"The pandemic and the ensuing war in Ukraine have brought unusual growth and challenges," said Amazon CEO Andy Jassy in a press statement.

The manager spoke of "continued inflationary and supply chain pressures".

While Amazon's online sales fell 3 percent in the first quarter from the same quarter last year, costs rose 23 percent.

During the pandemic, the group hired thousands of employees worldwide and expanded its sales network.

Jassy wrote that it is now a matter of improving productivity and cost efficiency.

This could take "some time".

Investors have apparently not calmed down, but alarmed.

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