Over $800 billion wiped from largest US internet companies in 12 months
Leading American internet companies have not been spared from the ongoing economic uncertainty, with the firms being forced to strategize on navigating the current environment. The impact has seen the company shed a big share of its market capitalization as the uncertainty prevails.
In this line, data acquired by Finbold indicates that as of April 26, the largest internet companies in the US lost a total of $814.56 billion from their market capitalization over the past 12 months. As of April 2022, the companies controlled a market cap of $4.34 trillion, while in 2023, the figure stands at $3.53 trillion.
Streaming platform Netflix was hit particularly hard, with a loss of 36.18% in market cap, bringing its current capitalization to $143.84 billion, down from $225.39 billion in April 2022. Airbnb follows closely with a loss of 29.36%, currently valued at $70.89 billion. Amazon, the second highest-valued internet company in the US, experienced a market cap drop of 28.43% over the last 12 months, presently worth $1.05 trillion.
Payment platform PayPal, with a current market cap of $80.71 billion, recorded losses of 19.22%, followed by ServiceNow at -15.91%. Other notable losses include Alphabet (-15%), Uber (-3.16%), and Meta Platforms (-1.91%).
Elsewhere, online travel firm Booking Holdings experienced gains of 10%, increasing its market cap from $90.52 billion to $99.58 billion. Equinix’s market worth increased by 2.09% from $65.04 billion to $66.40 billion.
Impact of economic downturn
The data highlighted the drivers behind the market cap drop and possible implications. According to the research report:
“The decline in the market cap of the highlighted companies correlates with the prevailing economic downturn that has emerged from tightening monetary policies and higher inflation, contributing to heightened stock market volatility. Indeed, the market cap drop is contrary to the companies’ and broader technology sector performance, where they have historically exhibited resilience amid economic uncertainty.”
For the companies to rekindle their market worth, the economic outlook will play a vital role alongside the firms’ ability to adapt to new strategies to retain market competitiveness.
