Amazon shares slumped more than 8% on Friday, a day after the firm projected sales in the holiday quarter would be far below expectations.
Amazon shares recovered from earlier Friday morning, when the stock was 50% down from its highs, resulting in about a $940.8 billion hit to Amazon’s value.
The company said Thursday that revenue would be between $140 billion and $148 billion in the three months ending the year, which was far below consensus estimates of $155.15 billion, according to Refinitiv.
Revenue in the third quarter came in at $127.10 billion, up 15% year over year but slightly softer than Wall Street’s expected $127.46 billion. Amazon’s cloud business reported a 27.5% revenue growth rate for the quarter, which is the most sluggish growth since 2014, when the firm began breaking out AWS results.
Amazon isn’t the only company grappling with a rocky earnings week for Big Tech. Alphabet, Meta, and Microsoft all missed expectations for parts of their businesses, signaling how record inflation, rising interest rates, and fears of a recession are roiling their businesses. Several tech giants issued gloomy forecasts, marking a troublesome future for tech stocks.
