Jeff Bezos loses $6 billion In A Single Day Of Trading: Reports

Jeff Bezos loses $6 billion

Yikes! Jeff Bezos lost $6 billion in one day after Amazon’s stock’s plummeted.

Accordingto media reports, the huge loss was caused by an 11 per cent drop in share prices after the company’s quarterly profit fell way below expectations.

Bezos’ drop in personal finances meant he had been relegated from the fourth to the fifth richest person in the world by Wednesday evening. 

According to Forbes, he was worth $49.8 billion at 5pm ET. In the space of 30 minutes he lost $800million, so ended up falling behind Carlos Slim Helu of Mexico, who is now the fourth richest person in the world with a net worth of $49.6 billion.

Investors were preparing for good returns from the online retail giants.

But then Amazon reported a profit of $1.00 per share, while analysts expected an average profit of $1.56

When the results came in, the response was brutal. Stock fell to a low of $545.97 after hours from its closing share price of $635.55 per share. As of 5:00 p.m. ET, Amazon was trading at only $562.80

Even though share prices slumped, sales rose by more than $5billion.

The revenue for the final three months of 2015 was 35.7 billion US dollars, up from just over 29 billion (£20.1bn) in 2014. The three-month time-frame includes the crucial Christmas period, always an important time for the online retailer.

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But despite figures for the year that showed a 71 per cent rise in revenue and 186 per cent rise in profit, the results missed the expectations set by analysts and investors, and as a result share prices dropped 12 per cent in after-hours trading.

Bezos remained positive however, following the results.

‘Twenty years ago, I was driving the packages to the post office myself and hoping we might one day afford a forklift. This year, we pass 100 billion dollars in annual sales and serve 300 million customers.

‘And still, measured by the dynamism we see everywhere in the marketplace and by the ever-expanding opportunities we see to invent on behalf of customers, it feels every bit like day one.’

The firm also reported success in other areas – namely its own-brand hardware and Amazon Prime membership plan. Amazon said its Fire TV streaming devices remain the best-selling in the US, while Prime membership – which includes access to the Fire TV streaming service of films and television, as well as a music service and quicker delivery from Amazon Store – rose by 51% globally.

Technology expert and senior managing editor at CNET, Kent German, said: ‘Despite Amazon reporting its third straight quarter of profits and record sales, the company missed analyst expectations by a wide mark.

‘It continues to expand in new areas like cloud services, streaming entertainment and hardware, but the growing number of Amazon Prime users are presenting the company with a fulfilment problem. It hasn’t been able to recover the shipping costs it’s incurring to meet its promise of free delivery to Prime customers.

‘The challenge over the next year will be to cut shipping costs without prohibitively raising the cost of Prime membership.’

On the first Monday of the year, Bezos lost $3.7 billion – sending his net worth down to a mere $56 billion – after the online retailer slipped 5.8 per cent.

Now it has gone down even further.

While this loss is fantastic it is all relative to the income that Jeff Bezos earns. We have also received news that some unlucky Australian from Melbourne, Australia lost over 80% of his income by “investing” using binary trading on the website www.binarytradingaustralia.com

3 Comments

  1. Jeff Bezos loses $6 billion says:

    As the economy gets better and more people are working they will spend their money at stores where they can actually get their merchandise right then and there.,people love to shop,i do and when i got money i want to go to the mall and explore and find the great deals.Amazon will be fine just jeff wont be worth 200 billion now just 194 billion..lol i know i exaggerated

  2. tee says:

    What they fail to recognize it that the stock price jumped from 580 to 630 less than two days ago. It is now only 8 dollars less than it was (sitting at about 572) before the jump. All this means is that a lot of people who did sell shares yesterday made a ton of money, and those who just bought up shares at the 630 price lost….not anyone that has held on the them through the last few days

  3. Beverly Prather says:

    Not that his “loss” will hurt him much, but I pleaded a priest sex abuse case directly to Bezzo while working for him in Delaware. EVERYONE in Delaware wanted some of that “lawsuit” money involved, to INCLUDE BEZZO’s. A man like Bezzo, could have had that rapist put to prison with one phone call……..Free money from a child’s rape lawsuit……….and would Bezzo help me get the guy in prison??????????? NOPE……..FREE MONEY is the only word that counted with BEZZO. Money from child rape, priest sex abuse…….It took me years to get that guy in prison, while everyone counted up the “litigation money”

    I got my family out of Delaware, Bezzo would not like it if they were “litigating” money from the rape of HIS child. And like most of them BEZZO was already rich.