According to foreign media reports, following the plunging 8% of Amazon’s stock price on Friday, the company’s share price opened higher on Monday and fell 6.33%. In the past two trading days, Amazon’s share price has fallen by 13.7%, the two consecutive trading days since February 2014.
The sharp fall in Amazon’s share price was mainly due to the company’s third-quarter earnings report that disappointed the market. In the past month, Amazon’s share price has fallen by 23%. Compared with the company’s record high of $2050.50 in the intraday on September 4, the market value of Amazon has evaporated by nearly $250 billion compared to the market value of $1 trillion.
The plunge in Amazon’s share price has also led to a sharp decline in the personal net worth of founder and CEO Jeff Bezos, which is nearly $40 billion. According to data on the Forbes website, Bezos’ current net assets holding a 16% stake in Amazon are about $127.6 billion. Even so, Bezos is still the world’s richest man, ahead of Microsoft’s co-founder Bill Gates’s $94.1 billion, and Warren Buffett’s $82.4 billion.
The recent sharp drop in Amazon’s share price is a reversal for a company whose share price has continued to rise over the past few years. The company’s share price rose 56% in 2017 and has risen 31% this year. This momentum helped Bezos become the first rich man to be tracked by Forbes with a personal net worth of more than $100 billion. He also surpassed Gates and became the richest man who surpassed Gates for the first time since Gates reached the Forbes Fortune 400 in 1994. From September 2017 to September 2018, Besos’s personal net worth expanded rapidly from $81.5 billion to $160 billion.
Amazon’s earnings report released on Thursday showed third-quarter earnings per share of $5.75, well above analysts’ expectations of $3.14 per share, and revenue for the period was $56.58 billion, slightly lower than analysts’ estimate of $57.1 billion. Dollar. What scares investors is Amazon’s performance outlook. For the fourth quarter covering the key holiday shopping season, Amazon expects revenues to be between $66.5 billion and $72.5 billion, while analysts expect revenue to be $73.89 billion.
Of course, Bezos is not the only tech tycoon whose recent price has shrunk dramatically. Affected by lower-than-expected company revenues, Alphabet shares fell 5% on Monday, causing the two co-founders Larry Page and Sergey Brin to fall by 20 Billion dollars and 1.9 billion dollars. At present, the above two are still the 11th and 12th richest people in the world.
The continuous slump in Amazon’s share price dragged down the Nasdaq Composite Index. After falling 2.06% last Friday, the index opened higher and fell on Monday, down 1.63%.