Stock market losses accelerated after Amazon “shocked” investors with a weak revenue forecast for the fourth quarter of 2022.
This business week, the value of the largest US technology companies fell by almost $1 trillion after they disclosed their quarterly results. Indicators improved somewhat at the end of the week, wrote the Financial Times on Friday, October 28.
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Thus, losses in the stock market accelerated on Thursday after Amazon “shocked” investors with a weak profit forecast for the fourth quarter of 2022, which is the most important for the platform in relation to the New Year holidays. Year. The company is forecasting revenue in the period to likely be $15 billion below analyst forecasts of $155 billion.
The news ended the week when major US tech companies revealed their quarterly results. Reports have shown that growth has ended during the coronavirus pandemic, indicating their vulnerability to inflation and the global economic slowdown.
Amazon and Microsoft said their cloud business growth has slowed more than expected as customers look to cut costs. The news added to fears that some of the businesses considered most resilient to the slowdown, such as cloud computing and Google search advertising, are beginning to suffer.
Amazon’s negative outlook extended such concerns to the e-commerce sector, and the reaction to quarterly reports this week saw the combined value of the top five tech companies, which also include Alphabet, Apple, Meta and Microsoft, which is down about $950 billion from the start of the reporting period.
Facebook’s parent company, Meta, reported a sharp drop in its earnings amid falling ad revenue and a sharp increase in costs. As a result, its market value dropped by $84.6 billion.
Against this background, Apple looks better. The corporation reported revenue and earnings that exceeded analysts’ expectations. This news contributed to a slight recovery in the market and reduced the total loss to $770 billion, after which the top five technology companies were left with a total value of $6.43 trillion.
It was previously reported that the stock index S & P500 has updated at least two years. Shares are under pressure after comments and aggressive actions by the US Federal Reserve.
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Source: korrespondent
I am Dylan Hudson, a dedicated and experienced journalist in the news industry. I have been working for Buna Times, as an author since 2018. My expertise lies in covering sports sections of the website and providing readers with reliable information on current sporting events.