Amazon Shares Plunge, Jeff Bezos Loses $16 Billion in Single Day Slump
In a dramatic turn of events on August 2, 2024, shares of Amazon.com Inc. tumbled by 8.8%, causing a significant hit to the net worth of its founder, Jeff Bezos. The stock price closed at $167.90, marking an 8.78% drop for the day. This sharp decline in Amazon's market value led to a staggering reduction in Bezos' fortune, which fell by nearly $16 billion. According to the Bloomberg Billionaires Index, Bezos’ net worth now stands at $185.3 billion, down from $191.5 billion just a day earlier.
The broader stock market also experienced a severe selloff, with the Nasdaq 100 Index falling by 2.4%. This downturn was driven by a combination of factors, including a disappointing jobs report that revealed slower-than-expected employment growth. The data sparked concerns about a potential delay in Federal Reserve rate cuts, contributing to the market’s instability. The selloff erased $134 billion from the combined fortunes of the world’s 500 richest individuals.
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Bezos' loss is among the most significant, ranking as his third-worst one-day wipeout. The previous two major drops occurred on April 4, 2019, following his divorce settlement, and April 29, 2022, when Amazon shares plummeted by 14%.
The tech sector was hit hard, with notable losses for other tech billionaires. Elon Musk saw his net worth decrease by $6.6 billion, while Larry Ellison's fortune dropped by $4.4 billion. Mark Zuckerberg, Sergey Brin, and Larry Page also experienced declines exceeding $3 billion each. In total, technology tycoons saw $68 billion carved from their wealth.
Amazon's decline followed the company's announcement that it would continue investing heavily in artificial intelligence, even at the expense of short-term profits. This focus on AI, coupled with the broader market concerns, contributed to the steep drop in Amazon's stock price.
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Jeff Bezos has been offloading Amazon shares this year, selling approximately $13.5 billion worth of stock. Despite the recent decline, Bezos still holds about 912 million shares, representing around 8.8% of Amazon. His wealth also includes holdings in his space-exploration company Blue Origin and The Washington Post.
The decline in Amazon shares is particularly notable as it represents the largest drop since April 2022. The broader market turmoil has seen major indices such as the Dow Jones Industrial Average and the S&P 500 also experience significant losses, further exacerbating the impact on tech stocks.
