Amazon sell-off pushes market cap below $1 trillion for first time since April 2020

Amazon has exited the trillion-dollar club.

Shares of the e-retailer plunged 5.9% connected Tuesday, falling for a 5th consecutive time and closing astatine their lowest since April 2020. The sell-off has erased astir each of the stock's pandemic surge.

Investors continued to punish the institution for past week's disappointing fourth-quarter forecast. Amazon said gross during the vacation 4th would turn 2% to 8% implicit the year-ago period, acold beneath analysts' estimates. The unreality division, Amazon Web Services, besides reported weaker-than-expected sales.

It's the archetypal clip Amazon's marketplace headdress has been beneath $1 trillion since April 2020. The banal has plunged 42% successful 2021 and is connected gait for its worst twelvemonth since 2008, erstwhile it dropped 45%. The lone different twelvemonth that was worse was during the dot-com clang of 2000, erstwhile the institution mislaid 80% of its value.

Like the remainder of Big Tech, Amazon has struggled this twelvemonth owed to a slumping economy, soaring ostentation and rising involvement rates. On apical of that, Amazon has been forced to standard backmost aft expanding dramatically during the pandemic, present that consumers person returned to stores.

Amazon has been the second-worst performer successful the Big Tech radical this year, down Facebook genitor Meta, which has plummeted 72%. Meta told investors past week that gross successful the 4th fourth would apt diminution for a 3rd consecutive period.

-- CNBC's Annie Palmer contributed to this report.

WATCH: Amazon did not present connected earnings