Amazon shares fell about 8% on Friday after forecasting holiday-quarter sales below Wall Street estimates, as Big Tech stocks are on track to lose more than $400 billion this week.
The e-commerce giant said it expects revenue for the fourth quarter to be between $140 billion to $148 billion, significantly below the $155 billion analysts had expected for the holyday season. The weaker forecast comes as rising inflation weighs on consumer purchasing decisions.
Amazon fell some 14% in after-hours trading Thursday. The online retailer, whose market cap briefly fell below $1 trillion, was last down 8.4% at $101.66, after hitting its lowest since April 2020.
The company reported revenue of $127.1 billion for its third-quarter, a 15% increase from the prior year.
“There is obviously a lot happening in the macroeconomic environment, and we’ll balance our investments to be more streamlined without compromising our key long-term, strategic bets,” Amazon CEO Andy Jassy said in a statement.
As tech giants are sharpening their control over costs, almost every top company reported poor quarterly results early this week.
Microsoft, Alphabet and Facebook parent Meta gained between 1.2% and 3.1% in Friday’s early trading, after their shares plunged following a gloomy outlook from each company.
Apple was the only tech giant reporting revenue and profits that topped analysts’ estimates.
According to analysts, poor earnings and a troubled industry may signal the end of the Tech Boom.