More than $200 billion of Amazon’s U.S. stock market value was wiped out in extended trading on Thursday, Reuters reported.
Amazon shares plunged 17% after the opening bell, wiping out $190 billion in market value, after the retail and tech giant forecast a sales decline on promotional days, resulting in current-quarter sales falling short of Wall Street estimates. Apple shares also fell 1% in early trading, wiping about $30 billion off its market value, as quarterly sales fell short of Wall Street forecasts.
The broad drop in the value of the giants is a testament to the severity of the current world economic situation, with central banks raising interest rates to combat inflation. “Big tech companies are also affected by the economic slowdown, especially if they are consumer-driven,” the experts said.
“As the Fed begins its planned rate hike, it is cannibalizing some of the consumer-facing business and, given the magnitude of the rate hike, is causing the giants’ stock prices to contract sharply,” Mr. Mekler said.
Amazon’s lackluster quarterly sales sent Nasdaq futures tumbling about 3%, an indication that Amazon shares are expected to fall sharply when Wall Street opens on Friday. Google parent Alphabet and Microsoft each fell about 1 percent, falling further after quarterly sales reports on Tuesday.
Facebook parent Meta was in even worse shape, with its shares tumbling 25% earlier on poor earnings. Thursday’s drop dropped Meta’s stock market value to about $260 billion, and the once-high-powered social media giant now ranks 20th on Wall Street.
Post time: Oct-31-2022