Jeff Bezos’ poverty increased by $20.5 billion.
The world’s second richest man lost the huge sum in 24 hours. To be more precise, the crash occurred during the stock market trading session on April 29.
But don’t worry, the entrepreneur still had a net worth of $148 billion as of April 30, according to the Bloomberg Billionaires Index. Bezos is now worth more than $100 billion from the world’s richest man, Elon Musk.
His position as silver medallist is now under threat from French businessman Bernard Arnault, chief executive of luxury conglomerates including Louis Vuitton, Tiffany and Hennessy. Arnault’s wealth is estimated at $136 billion. Bill Gates is fourth with a fortune of $125 billion.
All members of the top 10 of the world’s largest wealth list, except Arnault, lost money on April 29, a dark day for Wall Street. It must be said that six of the ten richest people in the world are in the tech industry. Besides Arnault, other non-tech companies include Warren Buffett ($117 billion), Indian billionaire Gautam Adani ($122 billion) and Mukesh Ambani ($103 billion).
Jeff Bezos’ net worth as of March 2 was largely tied to his 9.81% stake in Amazon, according to FactSet.
Amazon worries investors
Amazon said on April 28 that it posted a loss of $3.8 billion, or $7.56 a share, in the last quarter, compared with a profit of $8.1 billion, or $15.79 a share, a year earlier.
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Revenue rose 7% from last year to $116.4 billion, the slowest year-over-year increase in more than a decade.
Amazon said its operating income was between $116 billion and $121 billion, compared with a Refinitiv forecast of about $125 billion for the quarter.
“The Ukrainian pandemic and subsequent war have brought extraordinary growth and challenges,” said CEO Andy Jassy. “Today, as we are no longer chasing physical or staffing capabilities, our team is focusing on improving productivity and cost efficiency across the fulfillment network. We know how to do this and have done it before.”
“It may take some time, especially as we deal with continued inflation and supply chain pressures, but we are seeing encouraging progress on many customer experiences, including speed of delivery performance, as we are now It’s close to the highest level since the pandemic in early 2020,” he added.
The numbers and comments caught investors off guard as they believed Amazon could weather the end of the pandemic economy as consumers turned to online shopping.
But the reopening of the economy doesn’t appear to have spared Amazon’s core retail business. At the same time, the e-commerce giant’s operating expenses have been increasing. Amazon in particular has had to hire people in its warehouses and must now face skyrocketing logistics and labor costs.
“While sales were only $6 million below expectations, the bigger headline was the company’s first quarterly loss since 2015, a loss of $7.56 per share, nearly $16.00 below Wall Street’s EPS estimates,” William Blair Analysts wrote in a note to clients.
On April 29, Amazon shares fell 14.05% to $2,485.63, their worst day since July 2006. In 24 hours, roughly $206 billion in market capitalization was wiped out. However, its market cap is still $1.26 trillion.