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Shares in Amazon plunge 20%: Online retail giant contributes to tech sector doom and gloom as shares plummet by nearly a fifth
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Amazon added to the doom and gloom in the tech sector as its shares fell nearly a fifth last night.
The online retail giant saw shares crash by as much as 20 percent in after-hours trading as it warned sales would disappoint in the crucial Christmas quarter.
Amazon forecast net sales of between £121 billion and £128 billion for the last three months of 2022. Analysts had expected £134 billion.
Gloom: The online retail giant saw shares crash as much as 20 percent in after-hours trading as it warned sales would disappoint in the pivotal Christmas quarter
The world’s largest online retailer struggles with rising costs, while pressure on household finances has led to a decline in consumer spending. It also faces stiff competition from rivals, including US retail giant Walmart, which are putting pressure on its sales.
Amazon said net sales rose 15 percent to £110 billion in the three months to September 30. Earnings in the quarter fell from £2.8bn last year to £2.5bn as rising costs took their toll. The crash wiped more than $200 billion from the company’s value. It came after a devastating week and before the updates, shares of US tech giants had already lost nearly $3 trillion in value this year.
Meanwhile, Apple gave investors some peace of mind, with shares falling just 0.5 percent after US markets closed. The iPhone maker said sales hit an all-time high of £78 billion, up 8 percent from a year earlier. Boss Tim Cook said it was entering the Christmas season with its “most powerful lineup” of products ever.