Black week for Big Tech Corps
- This week saw an almost $1 trillion decline in the value of the largest US IT businesses before a partial recovery, as breakneck growth was halted by the slowing global economy and increasing cost pressures.
- After Amazon startled Wall Street with a dismal sales prediction for the crucial fourth quarter of the year, when holiday shopping typically boosts company revenues, the stock market losses increased late on Thursday. The US e-commerce company predicted that the period’s sales will likely be $15 billion less than the $155 billion analysts had predicted.
- Amazon’s unfavorable estimate added to the suffering in the e-commerce industry, and the fallout from its earnings announcement caused the aggregate worth of the top five tech firms—Alphabet, Apple, Microsoft, Apple, and Meta—to be $950 billion less than it was at the start of the earnings season. Only Apple was able to endure the setback, reporting revenue and profitability that exceeded analysts’ predictions. The news helped the market see a small comeback later in the day, reducing the aggregate loss to $770 billion.
Source: Financial Times