Amazon erased $68.1 billion in market capitalization Friday after the company fell short of Wall Street’s revenue expectations in the third quarter, making software giant Microsoft the second-largest company in the United States.
Jeff Bezos’ mammoth e-commerce company plunged 7.8 percent on the week’s final day of trading, the stock’s worst day since Oct. 24, 2014. Amazon’s market cap is now $803.28 billion; Bezos himself lost $11 billion in equity value Friday.
Google-parent Alphabet, which also missed revenue expectations on Thursday, fell 1.8 percent Friday. The move reduces its market cap by $15.29 billion.
Alphabet reported earnings per share of $13.06 on revenue of $33.7 billion, while Amazon posted EPS of $5.75 and generated $56.6 billion in sales.
The latest glimpse into the financial health of two of the globe’s largest companies has renewed a sell-off in the so-called “FANG” stocks, the unofficial name of the group of stocks Facebook, Amazon, Netflix and Google. Now synonymous with big technology as a whole, the collective has underperformed the broader market over the past three months.
Facebook, Alphabet and Netflix have all lost more than 15 percent since late July, while the S&P 500 has shed 6.3 percent. Amazon has lost 9.1 percent since then. Friday’s price movement pushes Amazon further away from a $1 trillion market cap, a feat it briefly achieved on Sept. 4. That milestone has only been clinched by one other publicly traded American company: Apple.
The movement also catapulted longtime tech titan Microsoft back ahead of Amazon in terms of size. Amazon surpassed the software company in early 2018. Microsoft’s market cap is $821.05 billion.
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