Amazon Becomes First Company Ever To Lose $1 Trillion In Stock Value - Slashdot
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Amazon Becomes First Company Ever To Lose $1 Trillion In Stock Value
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Those declines aren't just limited to Amazon and Microsoft. The top five most valuable U.S. tech companies reportedly lost a combined $4 trillion in value this year. To put that in perspective, that's more than the combined GDPs of Turkey, Argentina, and Switzerland. Amazon, in particular, disappointed investors last month with third quarter revenues that failed to meet expectations. Worse still, the company said it's expecting to post fourth quarter year-over-year growth of just 2-8%. That's fine for a normal company, but there's nothing normal about Amazon which was, until now, a relentless growth machine. Like many other companies Amazon's also had to contend with declining e-commerce shopping as consumers, less concerned with covid-19, begin to trickle back into retail stores. "There is obviously a lot happening in the macroeconomic environment," CEO Andy Jassy said following the third quarter earnings report. "And we'll balance our investments to be more streamlined without compromising our key long-term, strategic bets."
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Still waiting a shred of evidence.
Hearsay is not evidence, Youtubes are not evidence, and above all, Agolf Twitler posts are not evidence.
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Red wave aborted, now it's just a light spotting overlaid on a skidmark.
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When there are two wolves and a sheep voting about what's for dinner, the well armed sheep leaves peacefully and shoots the wolves if they follow him..
If the wolves try to prevent this, or look about to, the sheep might shoot them first.
Nobody lets themselves be eaten for 'Democracy' because not being eaten is more important than others enjoying a 'Democracy' you are not a part of because you've been eaten.
Democracy is for coexisting. If that's impossible there is no reason to allow yourself to stop existi
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AMZN has a long way to fall. Their P/E is 79, even after losing a trillion in value. This isn't Biden's fault. It shouldn't be so high to begin with.
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Agree. It's obscene. This perverse extreme capitalism is going to kill itself, if it doesn't kill us all first.
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It's tax payer socialism for the rich. Not Capitalism. In Capitalism the losers go bankrupt. In our current system the losers get bailed out with tax payer money and keep all the upside for themselves.
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Same thing
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It is not. It is about capital controlling the means of production, full stop. That is literally the definition. All the other stuff you believe about capitalism is either stuff you made up to feel better about living in it, or stuff made up to delude you about how it works.
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Capitalism is SUPPOSED to be about allocating capital, but since all of Smith's warnings about the need for regulation and passing out corporate charters VERY sparingly and only with a short leash have been ignored, it's become well-heeled hucksterism at best.
The rich have a strong social safety net both formal through bailouts and informal through connections that won't let them fail. When a CEO yet again runs a company onto the rocks and has another chair in an executive suite pulled out and waiting for t
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Your grandma and grandpa just called me. They say they have been sold on your view of economy and would like to move in with you. You do have room, don't you? BTW: their meds are expensive, so you better start saving now seeing as you'll be rejecting Medicare.
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Yes, even big bubbles burst! Never learned that lesson before.
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Even after the layoffs, most of these companies are larger than they were in the beginning of 2022
https://www.macrotrends.net/st... [macrotrends.net]
https://www.macrotrends.net/st... [macrotrends.net]
Looks like a good time to score a bargain.
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I am sorry that you are holding AMZN purchased any time in the last 4 years.
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Seems Quantitative Easing pumped up more than Bitcoin. Bitcoin has no bottom till it's crabbed there for a year or more, but maybe the bottom is when enough layoffs commence forcing more Quantitative Easing and hyperinflation. Silver Ends the Fed lol.
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U.S. tech companies reportedly lost a combined $4 trillion in value this year. To put that in perspective, that's more than the combined GDPs of Turkey, Argentina, and Switzerland.
Apples and oranges. Valuation is the hypothetical dollar amount one would have to pay to buy a company. GDP is a real figure, representing the real value of actual stuff actually sold by a country within a year.
It's like saying "I'm selling my Yugo for $50,000. To put that in perspective, that's more than Bob makes in a year". Well yeah, but my valuation for the Yugo is bullshit - just like most corporate valuations - while Bob's salary is a fact.
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On that note, this guy lost 500 billion British pound in 7 minutes.
https://www.youtube.com/watch?... [youtube.com] -
Yup. Some years ago I did some work for a startup and was promised $x million worth of stock, which I just saw as funny money and never took seriously. Eventually they tanked and the stock became worthless, so in theory I both made and lost x million dollars.
Except that it was all imaginary so I never lost anything. The employees who thought it was all real weren't so fortunate.
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Mod parent up, probably as Funny. I found it on the mention of "funny", but I was initially looking for something like:
By the way, anyone else get purged from Facebook recently? I was barely using it and I still can't imagine what hideous crime I might have committed or even been accused of having committed. The purge email didn't give me a hint, so I guess I'm happy to save the five minutes some days.
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It's income versus total value. The more appropriate figures would be Amazon's revenue in a year versus GDP which puts Amazon at half of Switzerland, or the value of Amazon versus all Swiss Francs (about parity) or some such measure such as that plus the value of all Amazon's assets versus government assets (Switzerland probably has 100 times that of Amazon or more). Valuation to GDP is an apples to chipmunks comparison.
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The metrics are indeed different things, but your characterization of what the market value of a company represents is wrong, and can not be compared with something like a Yugo. The market value of a company represents the combination of (a) the liquidation value of all of its current assets, (b) the sum total of *ALL* future expected earnings (profit) - until the end of its existence.
The liquidation value of a company is how much all of it's physical assets, as well as it's intellectual property, would be
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Nobody loses or gains anything until the company is actually sold. As long as Bezos keeps his company, not a single dollar changes pocket.
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Bezos sells rather a lot of Amazon stock, on a pre-declared schedule, to keep Blue Origin going.
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Oh no! Does this mean he won't be going to Mars very soon? Can Elon Musk help him out? Perhaps the space-bros can pool their resources like a Groupon or something? I really, really, really want them to leave our planet as soon as possible.
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Nobody loses or gains anything until the company is actually sold.
But the company sells itself every day, whenever it offers an employee stock-based compensation.
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Every time a stock changes in value it is because of recent market activity, which is what sets the stock price. So a stock ticker cannot reduce in value unless buyers and sellers are actively trading the stock. Each of these buyers are gaining stock in the company, and each seller is gaining cash from the sale of their stock.
Even those who are not actively trading their stock are gaining or losing something when a stock fluctuates. They are at the least gaining or losing potential collateral.
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by WaffleMonster ( 969671 ) on Wednesday November 09, 2022 @10:53PM (#63040191)
Nice to see some air being let out of the tech stocks after being overinflated for so long.
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What the world really needs is for all bubble to pop. Housing, bond, stock, wage and all other bubbles should burst, we need a good round of solid debt restructuring, lowering of prices and serious deflation (reduction of the fiat money supply).
What we will get instead will be more money printing (inflation), rising prices for energy, food, all sorts of commodities, but also due to ever increasing inflation we will see more growth in the bubble sectors like housing and simultaneously we will see fewer and
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There's a wage bubble now too? Did I miss something important?
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I think there is a salary (monthly pay) bubble, but not a wages (hourly pay) bubble.
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Hundreds of thousands a year for coding websites and game apps? I would say there is.
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Well, if that's what the market pays? If it wouldn't, companies couldn't pay that kind of wage or would perish if they do. Apparently they can and are willing to.
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If the websites or games make more than that, then you're provably wrong. This is my surprised face. I thought the rule was whatever the market will bear? Now you want it to be whatever the ruling class wants it to be? GTFOH
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by q_e_t ( 5104099 ) on Thursday November 10, 2022 @02:33AM (#63040405)
Yes, the 1930s were great and led to unparalleled peace and prosperity in the 1940s.
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Totally. To put it in perspective, Amazon's net income has hovered around ~10-20 billion for the last few years (it was a lot less before that, but hey ho). So to 'earn out' the hypothetical value lost on the stock in the last year, it would need to continue in it's current form for around the next 50-100 years.
This is why western companies do not really care about producing medium-long term results. Who wants to have to slog through 50-100 years of keeping a company relevant and profitable when you can jus
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It is clearly a ponzi.
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...but more than that, you love to see it.
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by null etc. ( 524767 ) on Wednesday November 09, 2022 @11:47PM (#63040271)
To put that in perspective, that's more than the combined GDPs of Turkey, Argentina, and Switzerland.
That's, uhm, quite a perspective? It's probably also more than the combined cellular atomic count of epiphyllum oxypetalum, dendrophylax lindenii, and calceolaria uniflora. How's THAT for perspective?
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"That is more than the number of people who will attend your funeral"
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How many libraries of Congress is that?
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The "reason" was because they now have a 1 trillion dollar tax writeoff. Amazon is doing fine.
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Companies can't "write off" equity losses from a falling stock price, nor do they pay taxes on rising stock prices.
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The stock price falls on earnings and similar factors. You can't write off unrealized losses, but the write-offs of "losses" resulting in decreased reported revenue are what led to those stock price changes. This shit isn't rocket science and I have to assume you're a shill, hopefully at least a paid one.
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Amazon is making $3B/qtr in profit. There are no operating losses and no "write-offs".
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2021 earnings were 35.1b, taxes they paid were 2.1b, for a rate of 6.1%. No one in their right might would believe your "there are no operating losses and no 'write-offs'" nonsense, shill. Small companies which don't even break 1m are closer to 50% in taxes.
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How does this work for pro wealth tax idiots? The ones who think share value is the same as cash, even though a wealth tax is physically impossible to pay because there isn’t money backing up the value of company shares. For example 10 companies can be worth one trillion because that is the amount people would be willing to pay for shares in any one of those companies, even though only one trillion in cash may be available collectively to anyone who wants to buy those companies. That is, if one compan
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That's my exact same thought. We've not heard as much from the wealth tax proponents this year as the market has been tumbling. It just shows the idiocy of class warfare and 'paying your fair share' trying to tax unrealized gains that can come and go in a matter of months. Pretty much all the 'obscene' gains made in '21 have been wiped out. It's not real money until it's dollars in a bank account.
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What the fuck are you talking about, lol.
Do you think Bezos is Scrooge McDucking into a fucking fault filled with 30 billion dollars?-
*vault, and $85 billion
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The billionaires would be taxed based on the new, lower valuation.
You can get taxed based on the market value of the house you live in so why not equity.
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Partly because governments want to encourage investment. Partly for the same reason that houses and lands are called "real property" (or "real estate") -- the reason has nothing to do with real vs fake, but with the legal rules for that kind of property compared to the rules for personal property.
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The best way to make it work is to charge corporations income tax, not profit tax.
You still let them write down purchases of supplies, so it's not like they have to pay taxes on their full income — just the profitable part.
However, we still need a one-time wealth tax in order to kickstart the system. I propose that the fairest way to wealth tax stocks is to just take a percentage of shares.
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How does this work for pro wealth tax idiots? The ones who think share value is the same as cash,
And yet, municipalities have no problem putting a tax on someone's home based on some arbitrary "value" even though said "value" of home fluctuates up and down every year.
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adding such high fees for products about 70% of the time I can find a better deal somewhere else and the 140$ for prime isn't worth an extra day of shipping, if I watched prime video it might be. I'm waiting for them to offer shipping only but that will never happen.
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Knowing Amazon, you can have shipment only but it will cost the same.
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The best thing people can do is stop buying crap from Amazon. No one needs that much Chinese-made junk.
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...he typed on his Chinese-made junk.
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People need some Chinese-made junk, just not all that utter crap they fill their houses with.
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AI detected significant loss in equity. Must motivate person in charge to do better.
Few moments later footsteps are heard at Bezos' home. ding dong Mister Bezos? I have a delivery for you. * rips open pack to find a bunch of empty bottles * -
A company's value is its value at a point in time. GDP is an amount for a given time period.
It's nice to compare big numbers but isn't this a bit like comparing speed to acceleration?
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