Amazon.com Inc (NASDAQ: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. (NASDAQ:NFLX) and PayPal Holdings Inc. (NASDAQ: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 (NYSE:SBUX) ($98.93 billion)
- Amazon lost the entire value of Advanced Micro Devices Inc (NASDAQ:AMD) ($99.92 billion)
- Amazon lost the entire value of Boeing Inc (NYSE: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 (NASDAQ: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 (NYSE: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. (NYSE:GME) ($8.33 billion)
- Amazon lost the entire value of 29.85 AMC Entertainment Holdings Inc’s (NYSE:AMC) ($3.35 billion)
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