Amazon sees shares tumble in largest intraday drop in ten years | Technology News

April was a bleak month for technology, with Apple, Microsoft, Amazon, Alphabet and Tesla collectively set to lose a trillion dollars.

Through Bloomberg

The shares of Amazon.com Inc. tumbled Friday, with the e-commerce company seeing its biggest intraday percentage drop since October 2011, after it released a outlook that was deemed disappointing.

Shares fell a whopping 13%, hitting their lowest point since June 2020. The sell-off erased more than $178 billion from the company’s market valuation. Amazon shares are down more than 20% this month, the largest single-month percentage drop since December 2018.

The slump is the latest blow to Wall Street’s biggest names, which came under heavy pressure in April amid a tumultuous earnings season and concerns about Federal Reserve policy. The Nasdaq 100 index is down 11% this month, clearing the market cap of the tech-heavy index $1.75 trillion.

Shares plunged worst since 2011 after weak report

Amazon analysts were negative about the report and Wells Fargo Securities was one of a number of companies that lowered their price target for the stock.

“We think the company is likely experiencing some weakening in demand, at least on the margins,” wrote analyst Brian Fitzgerald, who lowered his target from $4,250 to $4,000. He sees a positive long-term outlook, but expects short-term cost headwinds to weigh on operating profit.

trillion dollars

The shares of Alphabet Inc. fell a whopping 17% for the month of April, with the Google parent company experiencing its largest single-month percentage loss since March 2020. The company erased more than $300 billion in market value in the month of April, with weak first quarter sales weighing on shares this week.

Including Apple Inc. fell 1.4% Friday after the iPhone maker released its results and warned of the impact delivery restrictions would have on revenue. For the month, Apple fell a whopping 7.9%, putting it on track for its biggest single-month drop since February 2021.

Microsoft Corp. fell 2% on Friday. The software giant plunged a whopping 8.1% in April, poised for its worst decline since December 2018, even after it reported results that were deemed strong. Meta Platforms Inc. fell a whopping 8.4% in April, even with a huge spike in the wake of Thursday’s results.

(Updates trading everywhere.)

–With the help of Subrat Patnaik.

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