Around 1:30 ET, Amazon’s site crashed (AMZN). Around 3:30, we got an email with what will no doubt be the first of many estimates that try to quantify how much revenue Amazon just “lost.” (The first estimate was $1.8 million an hour, or about $3 million during the 90 minutes of downtime.)
But how much revenue did Amazon really “lose” during this outage? Most likely only a small fraction of this.
Why? Because when customers who wanted to buy something from Amazon went to the site and found it down, the majority of them likely figured the glitch was temporary and decided to check back later this afternoon. And lo and behold–it was temporary. So they’re probably placing their orders right now.
Amazon does not win business by having the “lowest prices on the web,” so folks who are obsessed with having the “lowest prices on the web” wouldn’t have bought from Amazon anyway.
Did Amazon lose some revenue in the 90 minues the site was down? Definitely. Did it lose “90 minutes-worth”. No.
What they did lose: About half a billion dollars in market cap, if only briefly. Amazon was trading at $82.25 at 1:37 p.m. ET, and dove down to a low of $80.90 at 2:40 p.m. That’s a 1.6% drop that shaved around half a billion dollars off Amazon’s market cap.