© Stocksak. In this illustration, taken April 29, 2022, the Amazon logo can be seen in front a decreasing stock chart. REUTERS/Dado Ruvic/Illustration
By Lewis Krauskopf & Noel Randewich
(Stocksak). – The U.S. stock exchange value rose in extended trade on Thursday after a weak forecast by Amazon (NASDAQ:), along with a series of negative quarterly reports from Big Tech companies.
Amazon’s stock fell 17% after the bell. It lost $190 billion in market capitalization as the technology and retail heavyweight predicted a holiday slump, which would see current-quarter sales fall below Wall Street estimates.
Apple shares (NASDAQ 🙂 fell about 1 percent after the bell. It lost about $30 billion of its stock value after the Cupertino-based company reported quarterly iPhone sales which fell short of Wall Street targets.
The latest in a string if poor quarterly results from Wall Street’s most well-known companies highlights deep concerns about global economic health as central bank raise interest rates to combat inflation.
“Big Tech companies are not immune to slowdowns, especially if they’re consumer-driven,” Rick Meckler, a partner with Cherry Lane Investments in New Vernon.
Meckler stated, “As the Fed embarks upon this planned slowdown it is eating away some of their consumer facing businesses and due to their high multiples it causes big contractions in stock prices.”
Nasdaq futures plunged about 3% following Amazon’s weak quarterly report. This shows that Wall Street traders expect a steep decline on Friday. Google-owner Alphabet (NASDAQ) and Microsoft (NASDAQ) both lost about 1%, adding to their losses after Tuesday’s poorly received quarterly reports.
Thursday’s late day reports were also disappointing. They followed disappointing results from Meta Platforms, Facebook-owner that sent its stock plummeting 25% earlier. Meta’s stock value fell to $260 billion on Thursday, making it the 20th most valuable company in Wall Street.
If Amazon’s stock drops after hours are reflected in Friday’s trading sessions, it will be its deepest one day loss since 2006.
Pinterest (NYSE:), which reported higher than expected quarterly revenues, surged 12%, while Intel (NASDAQ;) rose 6% despite forecasting annual revenue lower than analysts’ estimates.