Amazon shares dropped more than 7 percent Friday, which could mean losses for millions with 401(k) accounts that rely on the stock.
According to Investor’s Business Daily, Vanguard – a company that manages millions of 401(k) employer-sponsored pension accounts – holds the highest amount of Amazon stock next to founder Jeff Bezos. With Amazon’s drop, the value of Vanguard’s holdings plummeted by $8.4 billion Friday.
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Bezos, who still owns 10 percent (51 million shares) of Amazon stock even after stepping down as CEO, lost $13 billion.
Investor’s Business Daily explained that the stock prices dropped following the company’s second-quarter profit report. Although the company topped profit forecasts by 23 percent, revenue was 1.7 percent less than expected.
In addition to Vanguard, many Exchange Traded Funds (ETFs) and mutual funds hold Amazon shares. According to Investor’s Business Daily, the third largest Amazon shareholder is BlackRock, which owns the “popular” iShares collection of ETFs. Due to the Amazon drop, its stake is down by $7.2 billion.
Along with Amazon, other e-commerce stocks dropped Friday, including Wayfair, Etsy and eBay, which all dropped around 7 to 8 percent, said CNBC.
According to the outlet, Amazon was the only one out of the five most valuable U.S. tech companies to fall short of estimated revenue for the recent quarter.
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Many e-commerce companies saw increases last year during the height of COVID-19 pandemic lockdowns. Last year, Amazon saw revenue growth up 41 percent in the second quarter, said CNBC.
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