Shares of Amazon dropped in value after the e-commerce giant reported a quarterly loss on Thursday and this slump has affected Amazon founder and former CEO Jeff Bezos' net worth.

The billionaire is worth an estimated $177.5 billion which makes him the second richest person in the world behind Tesla CEO and SpaceX founder Elon Musk. Bezos lost around $13 billion of his fortune because of the news according to Bloomberg. If the slump persists, he could lose around $155 billion.

On top of the quarterly losses, the e-commerce giant also reported its slowest sales growth since 2001, which has made investors uneasy. The slump truly started with the value of Amazon shares dropping over 8% in early morning trading Friday.

Amazon says that higher labor costs and a surge in inflation are to blame for the net loss of $3.8 billion during Q1, compared to a profit gain of $8.1 billion during the same period last year. Refinitiv forecast a $4.4 billion profit for Amazon, according to CNN. On top of the $3.8 billion loss, the e-commerce giant also blamed Rivian Automotive for a $7.6 billion loss based on its investment in the electric automaker.

While Amazon expected a slower quarter compared to last year, the results still fell below expectations. According to an earnings report published this week, Amazon still posted impressive results.

Revenue grew 7% to $116.4 billion, which fell between Amazon's own estimates of 3%-7% growth, but that is compared to a growth of 9% at the same time last year.

Amazon has also been in the middle of multiple unionization battles with warehouse employees across the US and has dealt with the continuing effect of the COVID-19 pandemic on supply chain issues.

Shares of Amazon were trading at $2,451.70, down $440.23 or 15.22% as of 3:00 pm.

2. Jeff Bezos (Current net worth: $171B)
2. Jeff Bezos (Current net worth: $171B) - Jeff Bezos is the founder, former CEO and executive chairman of tech giant Amazon, which focuses on e-commerce, digital streaming, cloud computing and artificial intelligence. Before achieving much success, Amazon was simply a project in Bezos’ garage, shortly after resigning from hedge fund giant D.E. Shaw. Amazon originally sold books, although it wasn't long before it became a one-stop shop that offers everything under the sun. Amazon’s share price jumping as much as 76% during the pandemic further boosted his fortune. Decades after holding the position, Bezos stepped down as Amazon’s CEO on July 5, 2021. Photo by Axelle/Bauer-Griffin/FilmMagic
RELATED STORIES
Jeff bezos