For a hot second, Amazon.com (NASDAQ:AMZN) CEO Jeff Bezos was the richest man in the world.
But he didn’t even get a chance to celebrate. After ripping to new all-time highs, Amazon shares reversed and finished the day in the red. The stock dropped almost $7 on Thursday. That’s enough to knock poor Jeff Bezos’ net worth below fellow billionaire Bill Gates.
Sadly, Bezos is worth a paltry $89.3 billion as of yesterday afternoon, according to the Bloomberg Billionaires Index. To add insult to injury, Amazon’s second quarter earnings hit the wire after the bell. Judging by the stock’s initial reaction, investors weren’t impressed.
“The company appears to once again be squeezing out a very small profit on top of its mammoth retail operations, and that will only face more pressure as it looks to wrap up that deal and gain control of hundreds of retail outlets across the country,” TechCrunch notes, referencing Amazon’s $13.7 billion bid for Whole Foods.
To be fair, Amazon wasn’t the only tech stock to hit the skids yesterday. The Nasdaq Composite slipped into the red just after lunch as skittish traders booked profits. All the popular FAANG stocks reversed and moved lower. Even Facebook (NASDAQ:FB)retreated from its all-time highs after beating earnings estimates (although it was the only one out of the group to finish in the green on the day).
The FAANGs aren’t the only stocks taking it on the chin as we close out the trading week. Semiconductors – one of the strongest groups on the market – saw significant pullbacks in several popular names on Thursday, including a 3% drop in NVIDIA Corp. (NASDAQ:NVDA).
Of course, investors are completely freaking out as these popular stocks drop. With the major averages streaking to new highs almost every day, a quick selloff is all it takes to trigger a little panic these days…
After all, summer market action had been downright boring. Stocks have not endured a meaningful correction in a long time. The record low volatility we’ve experienced over the past few months has twisted the herd’s brain in a knot. Investors are now treating every single dip as if it was the beginning of a massive market crash…
Speaking of crashes, remember Amazon’s “flash crash” last month?
Amazon stock dipped below $930 for less than a second during an apparent fat-finger trade back in early June. The stock recovered almost immediately, posting a loss of a little more than 3% by the end of the trading day.