This is the biggest crook of the global stock market history. In just two days, more than $ 200 billion (approximately 174.5 billion euros) capitalization will go from one pocket, that of Facebook, to the other, that of Amazon. This Thursday, February 3, 2022 will be marked in the Annals as the day of the most spectacular stock market tumble in terms of amount. It was sufficient to the META company, Facebook’s mother house, to announce that it began to lose subscribers on its social network and that its income would be lower than the forecast for the company 25% and sees nearly 250 billion. Dollars go by smoke.
Higher salaries
A few hours later, Amazon produced the opposite effect with a leap, waited this Friday, February 4, more than $ 200 billion from its market capitalization. Its results are higher than what was expected, its cloud computing division, already world leader, increased by 40% and the firm has paid the luxury of announcing more than 16% of its Amazon Prime subscription. This will go to the United States of $ 119 (104 euros) to $ 139 a year. Renowned one of the cheapest markets, he now joins Netflix levels and most of his competitors. A small contribution to the impressive thrust of inflation in the United States.
It is this ability to increase its rates, and therefore its margins, which has delighted the markets. The opposite of Facebook, who had to recognize that the new confidentiality rules imposed by Apple, were going to lose nearly $ 10 billion. Moreover, neither Amazon nor Google did not suffer from this decision of the firm with apple.
Other Amazon strength demonstration, its results have suffered neither current logistical difficulties nor labor shortages in the United States. The firm, whose wages are notoriously higher than those of competition, attracts mass candidates. She hired 140,000 people in the last quarter 2021 and now employs 1.6 million people around the world. A unique performance for a company created less than thirty years ago.
The investor Warren Buffett, who has gone through a lot of crises in his career, is customary to repeat that it is when the sea withdraws that we see those who were nearing naked. This is the sorting that takes place today in technological values. Beware of those whose valuation is very high compared to their profitability, from Tesla to Uber via Netflix. They do not have the right to disappoint.