Amazon, a US big tech company, saw its stocks plunge nearly 4% due to its poor earnings outlook.
On the 28th (local time), Amazon plunged 3.98% from the previous trading day to $105.45 on the New York Stock Exchange.
Amazon announced its earnings the previous day. Amazon said in its earnings release that it had an earnings per share of 31 cents. This far exceeded market expectations of 21 cents. Revenue was $127.4 billion, it said. This also exceeds market expectations of $124.5 billion.
This is because cloud sales have been strong. Large-scale job cuts also helped improve performance. Amazon cut 27,000 jobs last quarter, the highest in the company’s history.
Shortly after the news broke, Amazon soared nearly 11% in after-hours trading.
However, stock prices turned downward due to concerns that sales in the cloud sector could fall in the future.
Amazon executives said in a conference call after the earnings announcement that cloud-sector earnings growth could slow down as companies cut spending.
As investors paid attention to such remarks, the stock price, which once soared 11% in after-hours trading, turned around 2%. Since then, the decline has continued and eventually closed nearly 4% in the regular market.
Investors seem to have paid more attention to the earnings outlook for the next quarter than to last quarter’s earnings.Shares of Intel, a leading U.S. semiconductor company, surged more than 4% after its performance exceeded market expectations.
On the 28th (local time), on the New York Stock Exchange, Intel surged 4.02% from the previous trading day to USD 31.06.
This is because Intel announced earnings that exceeded market expectations the previous day.
Intel Corp. reported a loss of 4 cents per share in the previous quarter. This is the worst quarterly performance in Intel’s history. However, market expectations exceeded. A loss of 4 cents per share is better than the market estimate of 15 cents.
Sales were $11.7 billion. It also exceeded market expectations of $11.1 billion.
Immediately after the announcement of such earnings, Intel’s stock price once fell nearly 3% in after-hours trading, but rebounded more than 6% as Intel unexpectedly did well over time. Since then, the regular market has also closed sharply by more than 4%.
