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The fear of a prolonged slowdown in the market, the stagnation of international sales, increased competition in the United States and total confusion as to how Amazon generates revenue are reasons that explain the 25% fall in value of the company since reaching its historic peak in September.
The world's largest online retailer has been favored by investors and its shares have more than doubled over the past two years because of optimism that the company will maintain sales and profitability. This enthusiasm has transformed its managing director, Jeff Bezos, into the richest man in the world and has led the company to briefly exceed $ 1 trillion in market value.
However, the quarterly results released Thursday told another story. Amazon has announced a disappointing revenue and profit forecast for the end-of-year vacation period.
The impact on investors has intensified since then and shares have lost a quarter of their value after reaching a record high of two thousand 39.51 dollars last month. The market value of Amazon has dropped by about 250 billion dollars.
At 12:15 in Mexico City, Amazon shares fell 2.22% to $ 1,504. With that, it has a market value of 742,000 142 million dollars.
Amazon's ills add a proposal on digital signature taxes in Europe and more information on tariffs that can reduce consumer spending. These combined factors convinced some investors that it was time to sell the company's shares.
"Investors are looking to sell their [acciones de los] winners of the year until now. Amazon rose 52 percent before the release of the report and gave them an excuse, "said Colin Sebastian, an analyst at Robert W. Baird.
Not only Amazon is facing a collapse of the market. The S & P 500 is plunging into its worst monthly performance since the start of the bull market. None of the two companies with outstanding results managed to increase confidence. Many other technology companies have also seen their values drop significantly in recent weeks. Facebook, which will announce its results after the end of the trading day, lost 35% after posting a record in July.
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