Amazon.com Inc AMZN rebounded Friday, climbing to the $100 level — gaining back about $100 billion in market cap — after basically seeing shares fall off a cliff on the previous day.
The e-commerce giant reported third-quarter financial results after the market close Thursday, beating on the top but missing on the bottom line.
After the report, shares fell a staggering 20% in after hours trading, initially dropping its market cap by $233 billion. That’s more than the combined value of Netflix Inc. NFLX and PayPal Holdings Inc. PYPL, or the value of five Twitter Inc. deals at Elon Musk‘s buyout price of $44 billion.
See Also: 10 Amazon Analysts Lower Price Targets Citing Disappointing Earnings, AWS ‘Surprise’
What Happened: Amazon reported third-quarter revenues of $127.1 billion, up 15% from the same period last year. According to data from Benzinga Pro, the sum fell short of a Street expectation of $127.84 billion.
In the third quarter, the Jeff Bezos-founded company posted:
- Earnings per share of 28 cents, exceeding the Street’s prediction of 22 cents.
- North American sector revenue increased by 20% from the previous year to $78.8 billion.
- $27.7 billion, or 5% less than the prior year’s third quarter, was the foreign segment’s revenue.
- If foreign currency rates were not taken into account, the international section would have increased by 12%.
- Revenue for Amazon’s AWS division reached $20.5 billion, up 27% over the previous year.
Why It Matters: Following the release of its earnings report, Amazon’s market cap is still down by around $104 billion.
To put the significant loss in perspective:
- Amazon lost the value of Warren Buffett’s entire net worth. ($101 billion)
- Amazon lost the entire value of Starbucks Corporation SBUX ($98.93 billion)
- Amazon lost the entire value of Advanced Micro Devices Inc AMD ($99.92 billion)
- Amazon lost the entire value of Boeing Inc BA ($85.3 billion)
- Amazon lost six times more than Mark Zuckerberg spent on his failing Metaverse ($15 billion)
- Amazon lost more than it invested in Rivian Automotive Inc RIVN ($700 million) and more than the market cap of Rivian itself. ($31.51 billion)
- Amazon lost the entire value of two Ford Motor Co’s F $52.9 billion
- Amazon nearly lost the entire value of Bezos’ net worth ($134 billion)
- Amazon lost the entire value of 12 GameStop Corps. GME ($8.33 billion)
- Amazon lost the entire value of 29.85 AMC Entertainment Holdings Inc’s AMC ($3.35 billion)
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