Amazon is first company in history to have a 1T drawdown in market cap | Hacker News Reader

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

twitter.com

35 pointsexz21 comments

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.

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.

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

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.

"healthy" means there should be no up nor down, should be linear valuation.

Does it pay dividends? Or plan to pay?

They've announced stock buybacks which are practically the same thing: https://www.cnbc.com/2022/03/09/amazon-announces-20-for-1-st...

AMZN is completely propped up by AWS and AWS growth is slowing.

>Fortune is of sluggish growth, but ruin is rapid

https://en.wikipedia.org/wiki/Seneca_effect

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.

Qualified dividends are taxed at the same rate as cap gains: https://www.fidelity.com/tax-information/tax-topics/qualifie....

Does it work for corp/foreign shareholders?

This happened last month.[1]

[1]: https://www.bloomberg.com/news/articles/2022-11-09/amazon-hi...

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

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

It's relative value.

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-pro...

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

Why is Amazon crashing?

Interest rates being high means the payoff for growth companies is a lot lower and the growth is harder to fuel.

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.

Reply on news.ycombinator.com