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Amazon.com Inc’s shares fell about 8 per cent on Friday after forecasting holiday-quarter sales below Wall Street estimates, while its Big Tech peers recovered from a bruising selloff this week.
The online retailer, whose market cap briefly fell below $1 trillion, was last down 8.4 per cent at $101.66, after hitting its lowest since April 2020, reports Reuters. Apple Inc, however, shone bright amid a crowd of dimming lights in the Big Tech space, as the iPhone maker reported revenue and profit that topped analysts’ estimates.
Microsoft, Alphabet and Meta gained between 1.2 per cent and 3.1 per cent after their shares were battered this week following gloomy outlook from the companies.
The Big Tech stocks are on track to lose more than $400 billion this week.
Many view the megacap companies as bellwethers for how corporate America is faring during a year in which inflation has soared, pushing the US Federal Reserve to enact a series of jumbo-sized rate hikes that have bruised markets.
Analysts fear macroeconomic factors, including a strong dollar, will continue to hit Amazon in the near term, however, over a longer period of time, the retailer should be able to bounce back.
“Despite accelerating revenues, Amazon has been cut down to size by the market after missing expectations. Efficiency has yet to return to the e-commerce business,” Ben Barringer said.
