Amazon extends slump to fall below $1000-mark

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Shares of e-commerce giant Amazon.com Inc. in the stock market ended in the negative zone on Monday, extending its slump to three in as many sessions, as the firm’s disappointing second quarter earnings continued to weigh in.

Off to a sluggish start this week, Amazon shares suffered a huge drop after retreating 2.15%, or $25.96 to settle at $998.15 per share, the lowest level in more than two weeks. The last time the firm closed below the $1000-mark was in July 11.

More importantly, the slump on Monday was surprisingly the smallest one-day decline in more than seven years. Talking about history, the firm has suffered more than 7% decline following the release of its quarter-earnings. On an average, its stocks fell 7.6% on the 12 time-loss.

So in the firm’s perspective, it might be just a normal reaction with its shares, leaving Amazon stocks still as a prime destination for investors.

This drop on Amazon shares have slashed $12.5 million in the company’s overall market capitalization and left a total of outstanding shares of 480.38 million. In terms of market value, the firm has given up $10 billion.

Last Friday, Amazon reported its second-quarter earnings, which showed lower-than-expected results, tallying a reported $0.40 earnings per share for three months ending in June, missing the consensus experts’ forecasts of $1.42.

Before the reports, its chief executive, Jeff Bezos surpassed Bill Gates as the richest man in the world but the achievement was short-lived when the firm’s shares tumbled 1%.

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