Apple, Amazon stock plunge set to wipe out $200 billion in market cap

Apple Inc. and Amazon.com Inc. late selloff on Thursday on the back of disappointing earnings reports may wipe out over $200 billion in combined market valuation from the companies when markets open on Friday.

Shares of Apple fell as much as 5% after its revenue missed expectations, hurt by supply constraints. Amazon fell by a similar degree after it gave a revenue forecast that was below consensus estimates and warned that high costs could wipe out any profit in its holiday quarter.

Apple ended Thursday’s session with a market capitalization of about $2.52 trillion, and the postmarket drop represents a loss of about $126.1 billion in market value. Meanwhile, Amazon closed with a value of about $1.75 trillion, and the post-earnings drop of 5% would erase more than $87 billion from its valuation.

The selling in the tech heavyweights overshadowed what had been a strong earnings period for the technology sector. Earlier this week, Alphabet Inc. and Microsoft Corp., both rose more than 4% earlier this week after results beat expectations. 

Amazon scared investors by warning that it could have sales of up to $140 billion in the busy holiday quarter without making a nickel in profit. 

“The company may not be immune to supply-chain roubles pervading the retail industry,” Bloomberg Intelligence analyst Poonam Goyal wrote in a note following the company’s report.

Subscribe to Mint Newsletters * Enter a valid email * Thank you for subscribing to our newsletter.

Never miss a story! Stay connected and informed with Mint.
our App Now!!

Source link

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button
%d bloggers like this: