Amazon’s value jumped from $ 1.880 billion in July 2021 to $ 879 billion on Wednesday. In other words: the Amazon’s value drops by a trillion dollarsmaking the audit of all transactions essential (alexa compress). In fact, it seems that the company is “reviewing” the investments for the voice assistant, to reduce costs.
Amazon loses a trillion dollars, even Alexa is in “review”
2021 was a record year for tech companies around the world. But 2022 isn’t proving as profitable. Microsoft went from $ 2.5 trillion to $ 1.78 trillion in one year. Meta is worth 285 billion, while last year Facebook was worth more than a trillion. But Amazon is the first company to lose a trillion dollar valuation. Unheard of figures, also because until recently there were no companies with a similar value.
To deal with this situation, the CEO of Amazon Andy Jassy he is conducting a spending review, according to the Wall Street Journal. And among the operations under analysis there is also Alexasince according to the Journal this division has suffered operating losses of $ 5 billion in recent years.
The company, on the other hand, is publicly supporting Alexa support. Spokesman Brad Glasser explains to The Verge that “interactions with Alexa have grown by over 30% in the last year. We are optimistic ”.
However, analysts seem to predict that investments in this business sector could decline. Amazon has always considered Alexa an investment in the future, which did not need to bring immediate income. But the bad financial period couldand tighten investments in R&D a little.
The declining financial results didn’t stop Amazon from acquiring robotic vacuum cleaners this year iRobot or your health insurance provider One Medical in the United States with billions of dollars. The company only warns that “they are carrying out investment reviews, including annual evaluations of operational strategies”. And that it will exploit “the opportunities to optimize costs”.
So don’t worry: Alexa will continue to respond to you. But perhaps the next news of the assistant could come more calmly.