5 ms·

Amazon is first company in history to have a 1T drawdown in market cap

35 points by exz 4y ago

__derek__ 4y ago
This happened last month.[1] [1]: https://www.bloomberg.com/news/articles/2022-11-09/amazon-hits-unwelcome-milestone-with-1-trillion-in-value-lost https://www.bloomberg.com/news/articles/2022-11-09/amazon-hi...
vt85 4y ago
[dead]
imranq 4y ago
Just goes to show that "value" of a company based on market cap is a highly fickle and unreliable metric to compare companies with
- theGnuMe 4y ago
  It's relative value.
bradhe 4y ago
Took Amazon 25 years to go from a $0 market cap to a $1T market cap. Took Amazon 2 years to go from $1T market cap to $2T market cap. Took Amazon like 6 months to go from $2T market cap back to $1T market cap. Totally healthy economics.
- crazygringo 4y ago
  Unsure what you mean. That's how exponential growth works, and then that's how market downturns work, combined with economic uncertainty of COVID. Don't see what's "unhealthy" or even out of the ordinary about it.
  - mrbigbob 4y ago
    There decline has nothing to do with COVID. They reaped in a quite a large sum of money during COVID, especially when a great deal were staying at home and they didnt want to or couldnt go to a local store
- Spivak 4y ago
  Eh Amazon’s P/E has settled down since the wildness of 2014-2016 so this isn’t the market being crazy, Amazon really does have the earnings to back it up.
  - revskill 4y ago
    "healthy" means there should be no up nor down, should be linear valuation.
  - mstipetic 4y ago
    Does it pay dividends? Or plan to pay?
    - mrep 4y ago
      They've announced stock buybacks which are practically the same thing: https://www.cnbc.com/2022/03/09/amazon-announces-20-for-1-stock-split-10-billion-buyback.html https://www.cnbc.com/2022/03/09/amazon-announces-20-for-1-st...
  - pokerhobo 4y ago
    AMZN is completely propped up by AWS and AWS growth is slowing.
- ren_engineer 4y ago
  >Fortune is of sluggish growth, but ruin is rapid https://en.wikipedia.org/wiki/Seneca_effect https://en.wikipedia.org/wiki/Seneca_effect
- sleton38234234 4y ago
  i suspect a lot of the super high PEs we're seeing has to do with the tendency to prefer capital gains over dividends, due to regulations incentivizing this.
  - mrep 4y ago
    Qualified dividends are taxed at the same rate as cap gains: https://www.fidelity.com/tax-information/tax-topics/qualified-dividends#:~:text=Qualified%20dividends%20are%20generally%20dividends,known%20as%20a%20holding%20period https://www.fidelity.com/tax-information/tax-topics/qualifie....
    - fomine3 4y ago
      Does it work for corp/foreign shareholders?
patrick451 4y ago
And my most conventional metrics, they are still substantially overpriced with a PE ration of nearly 80.
Alifatisk 4y ago
Why is Amazon crashing?
- oneoff786 4y ago
  Interest rates being high means the payoff for growth companies is a lot lower and the growth is harder to fuel.
- amazon_illegal 4y ago
- yucky 4y ago
  Their market cap still makes them one of the largest companies on the planet and their PE ratio is still way higher than would be expected for an almost 30 year old company. Their PE ratio is also still 3-4X higher than other tech giants like MSFT and GOOG. That means it's not so much crashing as starting to approach a more sane valuation.
deltree7 4y ago
It's the most meaningless statistics among the most useless statistics 1st Company to have $1 Million drawdown in Market Cap 1st company to have $1,000,0001 drawdown in Market Cap .... 1st company to have $10,000,000 drawdown .... 1st company to have $100,000,000 ... ... 1st company to have $1,000,000,000,000 drawdown ... ... There will be a 1st company to have $10,000,000,000,000 drawdown ... and so on It doesn't say anything about anything
- canadianfella 4y ago
type0 4y ago
It is also the first company in history that has patented Wagie Cage for their workers https://ifunny.co/picture/wagie-cage-9000-improve-worker-productivity-with-the-patented-wage-u2yJAfFE7 https://ifunny.co/picture/wagie-cage-9000-improve-worker-pro...

35 points by exz 4y ago

This happened last month.[1] [1]: https://www.bloomberg.com/news/articles/2022-11-09/amazon-hits-unwelcome-milestone-with-1-trillion-in-value-lost https://www.bloomberg.com/news/articles/2022-11-09/amazon-hi...

vt85 4y ago

[dead]

imranq 4y ago

Just goes to show that "value" of a company based on market cap is a highly fickle and unreliable metric to compare companies with

theGnuMe 4y ago
It's relative value.

bradhe 4y ago

Took Amazon 25 years to go from a $0 market cap to a $1T market cap. Took Amazon 2 years to go from $1T market cap to $2T market cap. Took Amazon like 6 months to go from $2T market cap back to $1T market cap. Totally healthy economics.

crazygringo 4y ago
Unsure what you mean. That's how exponential growth works, and then that's how market downturns work, combined with economic uncertainty of COVID. Don't see what's "unhealthy" or even out of the ordinary about it.
- mrbigbob 4y ago
  There decline has nothing to do with COVID. They reaped in a quite a large sum of money during COVID, especially when a great deal were staying at home and they didnt want to or couldnt go to a local store
Spivak 4y ago
Eh Amazon’s P/E has settled down since the wildness of 2014-2016 so this isn’t the market being crazy, Amazon really does have the earnings to back it up.
- revskill 4y ago
  "healthy" means there should be no up nor down, should be linear valuation.
- mstipetic 4y ago
  Does it pay dividends? Or plan to pay?
  - mrep 4y ago
    They've announced stock buybacks which are practically the same thing: https://www.cnbc.com/2022/03/09/amazon-announces-20-for-1-stock-split-10-billion-buyback.html https://www.cnbc.com/2022/03/09/amazon-announces-20-for-1-st...
- pokerhobo 4y ago
  AMZN is completely propped up by AWS and AWS growth is slowing.
ren_engineer 4y ago
>Fortune is of sluggish growth, but ruin is rapid https://en.wikipedia.org/wiki/Seneca_effect https://en.wikipedia.org/wiki/Seneca_effect
sleton38234234 4y ago
i suspect a lot of the super high PEs we're seeing has to do with the tendency to prefer capital gains over dividends, due to regulations incentivizing this.
- mrep 4y ago
  Qualified dividends are taxed at the same rate as cap gains: https://www.fidelity.com/tax-information/tax-topics/qualified-dividends#:~:text=Qualified%20dividends%20are%20generally%20dividends,known%20as%20a%20holding%20period https://www.fidelity.com/tax-information/tax-topics/qualifie....
  - fomine3 4y ago
    Does it work for corp/foreign shareholders?

patrick451 4y ago

And my most conventional metrics, they are still substantially overpriced with a PE ration of nearly 80.

Alifatisk 4y ago

Why is Amazon crashing?

oneoff786 4y ago
Interest rates being high means the payoff for growth companies is a lot lower and the growth is harder to fuel.
amazon_illegal 4y ago
yucky 4y ago
Their market cap still makes them one of the largest companies on the planet and their PE ratio is still way higher than would be expected for an almost 30 year old company. Their PE ratio is also still 3-4X higher than other tech giants like MSFT and GOOG. That means it's not so much crashing as starting to approach a more sane valuation.

deltree7 4y ago

It's the most meaningless statistics among the most useless statistics 1st Company to have $1 Million drawdown in Market Cap 1st company to have $1,000,0001 drawdown in Market Cap .... 1st company to have $10,000,000 drawdown .... 1st company to have $100,000,000 ... ... 1st company to have $1,000,000,000,000 drawdown ... ... There will be a 1st company to have $10,000,000,000,000 drawdown ... and so on It doesn't say anything about anything

canadianfella 4y ago

type0 4y ago

It is also the first company in history that has patented Wagie Cage for their workers https://ifunny.co/picture/wagie-cage-9000-improve-worker-productivity-with-the-patented-wage-u2yJAfFE7 https://ifunny.co/picture/wagie-cage-9000-improve-worker-pro...