Amazon Inc. (AMZN) - Get, Inc. Report officially entered bear market territory on Friday, falling 20% from its previous intraday high of $2,050.50 reached last September.

Amazon's shares closed down 5.38% to $1,626.23 on Nasdaq Friday, representing a decline of 20.7% from its high. The drop on Friday came despite the fact that the company had a record-setting holiday season, as company expectations of a weaker-than-expected first quarter, in part due to higher spending, had both analysts and investors reconsidering the e-commerce giant's trajectory.

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On Thursday after the close, Amazon reported fourth-quarter earnings of $6.04 per share on a 20% increase in revenue to a record $72.4 billion. However, for the first quarter, the company said it expects to generate revenue between $56 billion and $60 billion, short of consensus estimates of $60.83 billion, and to generate operating income of $2.3 billion to $3.3 billion, versus estimates for $3.09 billion.

Additionally, the company said that it would increase investments in 2019 after scaling back its cash burn and hiring in 2018. 

The company is also facing potential headwinds in India as a new law in the country prohibiting the company from negotiating exclusive agreements with vendors, as well as from selling items through vendors that they hold an equity stake in. 

Amazon at one time had a valuation above $1 trillion as its stock price soared above $2,000 per share in early September, but the company's current market cap is now just below $800 billion.