Amazon Inc. (AMZN) could do little wrong for most of 2018, but a recent dip and Wednesday's market-wide selloff has the e-retail giant in correction territory. 

Shares of Amazon closed trading down 6.15% Wednesday afternoon, and the stock has fallen almost 14% since hitting a record high of $2,039.51 on September 4. 

A correction is defined by most Wall Streeters as a decline between 10% and 20% from a bull-market high. Anything more than a 20% is then known as bear market territory. 

Amazon, which is next in line to become the second company ever with a market capitalization above $1 trillion after Apple Inc. (AAPL) , closed with a market cap below $900 billion for the first time since August 3. At Wednesday's close, Amazon's market cap stood at $856 billion. 

Shares of fellow FAANG stocks Facebook Inc. (FB) , Alphabet Inc. (GOOGL) , Netflix Inc. (NFLX) , and Apple were down 4.13%, 5.06%, 8.38% and 4.63%, respectively. The Nasdaq fell more than 4% on Wednesday.

Apple, Amazon, Facebook and Alphabet are holdings in Jim Cramer's Action Alerts PLUS member club. Want to be alerted before Jim Cramer buys or sells FB, AMZN, AAPL or GOOGL? Learn more now.

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