Amazon joined the despair and gloom of the tech sector yesterday night when their shares plunged by about a fifth.
The online retail giant’s stock fell as much as 20% in after-hours trading on a warning that sales in the important Christmas quarter would be disappointing.
Amazon anticipates net sales between £121 billion and £128 billion for the final quarter of 2022. Analysts anticipated £134 billion.
The world’s largest online retailer has struggled with escalating prices and a decline in consumer purchasing due to tighter family finances. Intense competition from rivals, such as US retail behemoth Walmart, also weighs on its sales.
Amazon reported a 15% increase in net sales to £110 billion for the quarter ending September 30. The company’s quarterly profit decreased from £2.8 billion to £2.5 billion due to rising costs. The company’s value was reduced by more than $200 billion due to the crash. Before the revisions, shares of US IT firms had already lost about $3trillion in value this year, following a week of severe losses.
Apple, meanwhile, provided investors with some relief, with shares declining by only 0.5% after US markets closed. The iPhone manufacturer reported record-breaking revenues of £78 billion, up 8% from the previous year. Tim Cook, Apple’s CEO, stated that the company was entering the holiday season with its “strongest lineup of goods ever.”
