amazon-building

Wall St. loses more than $200 billion in value following a report by Amazon

After a weak forecast by Amazon (AMZN.O), and a series of negative quarterly reports from Big Tech companies, over $200 billion was added to the U.S stock market’s value in extended trade on Thursday.

Amazon stock plunged 17% following the bell. This wipes out $190 billion of market capitalization. The retail and technology heavyweight had predicted a holiday slump, which would result in current-quarter sales falling below Wall Street estimates.

Apple (AAPL.O shares also fell about 1% after the bell. This is even though the Cupertino-based company reported quarterly iPhone sales which fell short of Wall Street targets.

Wall Street’s largest companies have reported poor quarterly results, highlighting deep concerns about the global economy’s health as central banks raise interest rates to fight inflation.

“Big tech companies are not immune to slowdowns, especially if they’re consumer-driven,” Rick Meckler, a partner with Cherry Lane Investments, New Vernon, New Jersey.

Meckler stated that the Fed is embarking on a slowdown and it is impacting some of their consumer-facing businesses. And, given their high multiples, it is causing large contractions in stock prices.

Nasdaq futures fell about 3% after Amazon’s weak report. This indicates that traders expect Wall Street will open with a steep decline on Friday. Google-owned Alphabet (GOOGL.O), and Microsoft (MSFT.O), both lost about 1%, adding to their losses after Tuesday’s poorly received quarterly reports.

The disappointing results of Meta Platforms (META.O), Facebook’s owner, also led to Thursday’s late-day reporting. This follows a 25% drop in its stock price earlier. Meta’s stock value fell to $260 billion on Thursday, making it the 20th most valuable company on Wall Street.

If Amazon’s after-hours drop is reflected in Friday’s trading session, it would be its largest one-day loss ever since 2006.

Pinterest (PINS.N) was one of a few winners on Thursday night, rising 12% after it reported higher-than-expected quarterly revenue. Intel (INTC.O), however, rose 6% despite its forecasted annual revenue being below analysts’ expectations.

About The Author

Leave a Comment

Scroll to Top