The world's wealthiest man's fortune has plunged to US$127.6 billion after Amazon's third-quarter earnings call.
He is still comfortably the wealthiest person in the world.
Jeff Bezos' fortune drops another $8 billion as Amazon's stock falters, which means his net worth has fallen by some $19 billion in the last 2 business days https://t.co/AdUrFcCLUr pic.twitter.com/I4dAec3nlw
— Forbes (@Forbes) October 29, 2018
Investors dumped Amazon shares after the Q3 earnings call
The decline in Bezos’ fortune resulted from Amazon’s worst two-day trading period since 2014. The company’s shares lost almost 8% in value on Friday as its market capitalisation plunged by US$70 billion.
The e-commerce behemoth had reported disappointing revenue growth and forecast a growth in fourth-quarter sales of between 10% and 20%. This was below the projections analysts had circulated and would make for Amazon’s lowest quarterly sales growth since the first quarter of 2016.
Amazon has enjoyed sales increases between 29% and 43% in the previous four quarters but reported it is now facing increased competition and has not made the inroads it expected into international markets.
— CNBC Now (@CNBCnow) October 29, 2018
Amazon hopeful of a “strong holiday season”
Amazon CFO Brian Olsavsky said the upcoming holiday quarter was “always a very difficult period for us to estimate”. Managers talking to media at the earnings call stressed that the forecast factored in an 80 basis-point change in exchange rates that would hamper growth.
Olsavsky was still optimistic for Q4. “We’re expecting a strong holiday season, so there’s no message in our forward guidance against that,” he told reporters. “We have everything ready to roll.”
Over the past year, however, Amazon shares are up 39% even after the disappointing Q3 results. Earlier in 2018, Amazon briefly became just the second publicly traded company to reach a market cap of US$1 trillion.
The company also reported that it has now given US$100 million to charity via its ‘AmazonSmiles’ program, which donates 0.5% of the purchase price of many items available through the site to charities selected by shoppers.