Business Maverick

Business Maverick

Amazon’s Biggest Drop Since 2014 Caps Miserable Month for Tech

Signage is displayed outside the new Amazon Go grocery store in Seattle, Washington, U.S., on Tuesday, Dec. 6, 2016. Amazon.com Inc. unveiled technology that will let shoppers grab groceries without having to scan and pay for them -- in one stroke eliminating the checkout line. Photographer: David Ryder/Bloomberg

Amazon.com Inc. shares are tumbling on Friday, with the e-commerce company seeing its biggest intraday percentage drop since July 2014, after it gave an outlook that was seen as disappointing.

Shares fell as much as 12% in early trading in New York, taking shares to their lowest since June 2020. The drop erased about $170 billion off the company’s market valuation. Amazon shares are down more than 20% for the month, their biggest one-month percentage drop since December 2018.

The slump represents the latest hit to Wall Street’s biggest names, which have come under heavy pressure in April amid a tumultuous earnings season and concerns over Federal Reserve policy. The Nasdaq 100 Index is down as much as 11% this month, erasing $1.75 trillion off the tech-heavy index’s market capitalization.

Wall Street's biggest names have tumbled in April

Read more: Investors See $1.8 Trillion Value Vanish in a Month

Wells Fargo Securities was one of a number of firms that cut its price target on the stock.

“We believe the company is likely experiencing some demand weakening, at least on the margin,” wrote analyst Brian Fitzgerald, who cut his target to $4,000 from $4,250. He sees positive long-term prospects, but expects cost headwinds will weigh on operating income in the near term.

Trillion Dollar Drop | Apple, Microsoft, Amazon, Alphabet and Tesla combine to lose more than $1T

Alphabet Inc. shares are down as much as 17% for the month of April, putting the Google parent on track for its biggest one-month percentage loss since March 2020. The company has lost nearly $300 billion in market value over the month of April, with weak first-quarter revenue weighing on shares this week.

Among other names, Apple Inc. rose 0.3% on Friday after the iPhone maker reported its results and warned about the impact that supply constraints would have on revenue. The day’s modest gain wasn’t enough to offset losses earlier in the month; Apple is down as much as 7.9% for the month of April, putting it on track for its biggest one-month drop since February 2021.

Microsoft Corp. is down 6.3% for April, even after it reported results that were seen as strong. Meta Platforms Inc. is down as much as 8.4% for April, even with a huge spike in the wake of results on Thursday.

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