The market capitalization of the online retailer momentarily fell below $1 trillion, and it reached its lowest point since April 2020 before finally falling 8.4% to $101.66.
As the producer of the iPhone reported sales and profitability that exceeded analyst estimates, Apple, in contrast, gleamed in much of the faint light in a vast tech industry.
After their shares declined this week due to the firms’ negative outlook, Microsoft, Alphabet, and Meta all had gains between 1.2% and 3.1%.
Big tech stocks are expected to lose more than $400 billion this week. How U.S. businesses are coping in a year that hit markets when inflation soared and forced the Federal Reserve to pass a series of massive rate hikes. Many people regard the megacap as a guardrail.
“Despite rising revenues, Amazon has shrunk from the market to its size after falling short of expectations. Efficiency has yet to return to the e-commerce business,” he said of Quilter Cheviot’s stock.
Analysts worry that macroeconomic factors, including a strong dollar, will continue to hit Amazon in the short term, but retailers should be able to recover in the long run.
The cloud services segment for tech companies continues to see strong growth, but this week there are signs from Amazon, Microsoft and Intel Corp that capex is slowing amid rising costs. Intel’s stock rose about 7% after announcing that the company’s cost-cutting plan included job cuts and expected cost savings of $3 billion over the next year.
However, analysts are cautious about how the company plans to cut costs.
Cost savings are necessary, but Intel needs to cut spending in the right places and focus on keeping R&D investments high, said Glenn O’Donnell, director of research at Forrester.