|
The
online retailer, whose market cap briefly fell below $1
trillion, was last down 8.4% at $101.66, after hitting its
lowest since April 2020.
Apple Inc, however, shone bright amid a crowd of dimming lights
in the Big Tech space, as the iPhone maker reported revenue and
profit that topped analysts' estimates.
Microsoft, Alphabet and Meta gained between 1.2% and 3.1% after
their shares were battered this week following gloomy outlook
from the companies.
The Big Tech stocks are on track to lose more than $400 billion
this week.
Many view the megacap companies as bellwethers for how corporate
America is faring during a year in which inflation has soared,
pushing the U.S. Federal Reserve to enact a series of
jumbo-sized rate hikes that have bruised markets.
Analysts fear macroeconomic factors, including a strong dollar,
will continue to hit Amazon in the near term, however, over a
longer period of time, the retailer should be able to bounce
back.
"Despite accelerating revenues, Amazon has been cut down to size
by the market after missing expectations. Efficiency has yet to
return to the e-commerce business," Ben Barringer, equity
research analyst at Quilter Cheviot, said.
While the cloud services segment has been one of high and
sustained growth for tech companies, indications for Amazon,
Microsoft and Intel Corp this week point to lower investments as
costs rise.
Intel's shares rose about 7% after the chipmaker said its
cost-reduction plan includes layoffs and is expected to lower
costs by $3 billion next year.
However, analysts are cautious of how the company plans to cut
costs.
Cost reductions are necessary, but Intel needs to focus on
cutting spending in the right places and keep research and
development investments high, Glenn O'Donnell, research director
at Forrester, said.
(Reporting by Akash Sriram, Medha Singh, Sruthi Sankar and Chavi
Mehta in Bengaluru; Editing by Shounak Dasgupta)
[© 2022 Thomson Reuters. All rights
reserved.]
This material may not be published,
broadcast, rewritten or redistributed.
Thompson Reuters is solely responsible for this content.
|
|
